hmt ltd (crd)(050915) · no. 4 of the accompanying notice dated september 3, 2015. item no - 4 shri...
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HMT LIMITED
(CIN No: L29230KA1953PLC000748)
Regd. Office: HMT Bhavan, No.59, Bellary Road, Banaglore-560032
Ph:080 – 23330333, Fax:23339111, e-mail:[email protected]
NOTICE
Notice is hereby given that the 62nd Annual General Meeting of HMT Limited will be held on Wednesday,
September 30, 2015 at 10.30 A.M. at the Registered Office of the Company at No.59, Bellary Road,
Banaglore-560 032 to transact the following Business:
ORDINARY BUSINESS
1. To receive, consider and adopt:
a. The Audited Standalone Financial Statements for the financial year ended March
31, 2015 and the reports of the Directors’ and Auditors’ thereon;
b. The Audited Consolidated Financial Statements for the financial year ended March 31,
2015 and the report of Auditors’ thereon;
2. To appoint a director in place of P. Sivarami Reddy (DIN 02678958), who retires by rotation
and being eligible has offered himself for re-appointment.
3. To authorize the Board of Directors to fix the remuneration of the Auditors’ for the year
2015-16.
SPECIAL BUSINESS:
4. To consider and, if thought fit, to pass with or without modification, the following resolution
as an Ordinary Resolution:
“RESOLVED THAT Shri Vishvajit Sahay (DIN. 06840620), who was appointed as an
Additional Director pursuant to Article 67(4) of the Articles of Association of the Company
read with Section 161 (1) of the Companies Act, 2013 w.e.f. 03.02.2015 to hold office
upto the date of this Annual General Meeting and in respect of whom, the Company has
received a notice in writing, pursuant to the provisions of Section 160(1) of the Companies
Act, 2013, be and is hereby appointed as a Director of the Company not liable to retire by
rotation.”
By Order of the Board
(Subash B. K.)
Company Secretary
Date: 03-09-2015
Place: Bangalore
Notes:-
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED
TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND
THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. A PERSON
APPOINTED AS PROXY SHALL ACT ON BEHALF OF SUCH MEMBER OR
NUMBER OF MEMBERS NOT EXCEEDING FIFTY AND HOLDING IN
AGGREGATE NOT MORE THAN TEN PERCENT OF THE TOTAL SHARE
CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS. HOWEVER, AS PER
RULE 19(2) PROVISO OF THE COMPANIES (MANAGEMENT AND
ADMINISTRATION) RULES, 2014, A MEMBER HOLDING MORE THAN 10%
OF TOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS
MAY APPOINT A SINGLE PERSON AS PROXY AND SUCH PERSON SHALL NOT
ACT AS PROXY FOR ANY OTHER PERSON OR SHAREHOLDER.
2. Corporate Members are requested to send a duly certified copy of the Board Resolution/ Power of
Attorney authorizing their representative to attend and vote on their behalf at the Annual General
Meeting.
3. Relevant Explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013, in respect
of Special Business, as set out above is annexed hereto.
4. Brief resume of each of the Directors proposed to be appointed/re-appointed, nature of their expertise
in specific functional areas, names of companies in which they hold Directorships and memberships/
chairmanships of Board Committees, Shareholding and relationships between directors inter-se as
stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, are provided in the
Corporate Governance Report forming part of the Annual Report and also accompanying this notice.
5. Pursuant to Section 139 (5) read with Section 142 (1) of the Companies Act, 2013, the Auditors of
a Government Company are appointed by the Comptroller and Auditor General (C&AG) of India
and their remuneration is fixed by the Company in the Annual General Meeting. The General Meeting
may authorize the Board to fix up an appropriate remuneration of Auditors for the year 2015-16 as
may be deemed fit by the Board.
6. As per Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management
and Administration) Rules, 2014 and Clause 35B of the Listing Agreement, the Company is pleased
to provide the facility to members to exercise their right to vote by electronic means through M/s
Karvy Computershare Private Limited. The members, whose names appear in the Register of Members
/ list of Beneficial Owners as on August 28, 2015 i.e. the cut off date taken by the Company for
dispatch of Annual Report and the Notice (including notice for e-voting) calling the Annual General
Meeting will be eligible to vote for the purpose of E-voting / AGM. The e-voting period will commence
from Sunday, September 27, 2015 at 9.00 A.M. and will end on Tuesday, September 29, 2015
at 6.00 P.M. The e-voting module will be disabled on September 29, 2015 after 6.00 P.M.. The
members desiring to vote through electronic mode may refer to the detailed procedure on e-voting
sent separately alongwith necessary user id and password. Once the vote on a resolution is cast by
the shareholder, the shareholder shall not be allowed to change it subsequently. The voting right of
shareholders shall be in proportion to their share in the paid up equity share capital of the Company
as on the cut-off date i.e. 28.08.2015.
7. In case of Joint holders attending the Meeting only such joint holder who is higher in the
order of names will be entitled to vote.
8. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent
Account Number (PAN) by every participant in securities market. Members holding shares in electronic
form are, therefore, requested to submit their PAN to their Depository Participants with whom they
are maintaining their demat accounts. Members holding shares in physical form can submit their PAN
to the Company/Karvy.
9. The Share Transfer Books and Register of Members of the Company shall remain closed
from 22.09.2015 to 30.09.2015 (Both days inclusive) in connection with the AGM.
10. The Company has appointed Shri D. Venkateswarlu to act as a scrutinizer, to scrutinize the e-voting
process in a fair and transparent manner. The Scrutinizer shall within a period not exceeding three (3)
working days from the conclusion of the e-voting period unblock the votes in the presence of at least
two (2) witnesses not in the employment of the Company and make a Scrutinizer’s Report of the
votes cast in favour or against, if any, forthwith to the Chairman of the Company. The results shall be
declared on or after the Annual General Meeting of the Company. The results declared along with the
Scrutinizer’s Report shall be available on the Company’s website within two (2) days of passing of the
resolution at the Annual General Meeting of the Company and will accordingly be communicated to
the stock exchanges.
11. Proxies duly stamped and signed must be deposited at the Registered Office of the Company not less
than 48 hours before the commencement of the meeting.
12. None of the Directors of the Company are related to each other in any way.
Members are requested to register their email-ids at the earliest to support the Company’s Green
initiative and for receiving all communications including Annual Report, Notices, Circulars
etc. from the Company electronically. In case of shareholders holding shares in electronic form,
details may be sent to their respective DP. Shareholders holding shares in physical form are
requested to send email details to our RTA, M/s Karvy Computershare Private Limited.
EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013
The following explanatory statement sets out the material facts relating to the business mentioned in Item
No. 4 of the accompanying Notice dated September 3, 2015.
ITEM NO - 4
Shri Vishvajit Sahay (DIN. 06840620), was appointed as Government Nominee Director of the Company by
the President of India vide letter F.No.5(8)/2010-P.E.X dated February 3, 2015 and accordingly was appointed
as an Additional Director pursuant to Article 67(4) of the Articles of Association of the Company read with
Section 161 (1) of the Companies Act, 2013 w.e.f. 03.02.2015 holds Office upto the date of this Annual
General Meeting.”
Brief Resume of Directors proposed for appointment / re-appointment as per listing agreement
[(clause 49 VIII(E) (1)(a)
SHRI VISHVAJIT SAHAY
Shri Vishvajit Sahay, aged 48 years was inducted as Part-Time Official Director on the Board of HMT w.e.f
February 3, 2015. Shri Vishvajit Sahay is a IDAS 1990 batch officer. He has worked in various capacities as
Director (Films), Ministry of Information and Broadcasting, Finance Manager in Acquisition Wing, Ministry of
Defence, Sr. Dy. Controller General of Defence Accounts (Admn), Joint Controller General of Defence Accounts
and at present he holds a post of Joint Secretary, Department of Heavy Industry.
Shri Vishvajit Sahay does not hold any shares in HMT.
SHRI P. SIVARAMI REDDY
Shri P.Sivarami Reddy aged 57 years was inducted as Director (Operations & Finance) on the Board of HMT
with effect from 26.05.2014. A Mechanical Engineer graduate with Master in Business Administration in
Marketing Management has served in various capacities for nearly 3 decades in different Units of HMT
Group. Before joining HMT he worked in two private companies in Hyderabad from 1980 to 1983.
Shri P.Sivarami Reddy does not hold any shares in HMT Ltd.
As per requirement of Section 160 of the Companies Act, 2013, the Company has received a Notice in
writing, proposing candidature of Shri Vishvajit Sahay (DIN. 06840620) for the Office of Director of the
Company.
Shri Vishvajit Sahay if appointed, shall not be liable to retire by rotation.
Shri Vishvajit Sahay is not disqualified from being appointed as a Director in terms of Section 164 of the
Companies Act. 2013.
Except Shri Vishvajit Sahay (DIN. 06840620), being an appointee, none of the Directors or Key Managerial
Personnel of the Company and their relatives is concerned or interested, financial or otherwise, in the resolution
set out at Item No - 4.
The Board recommends the resolution for approval of the Shareholders.
By order of Board of Directors,
(Subash B.K)
Company Secretary
Place: Bangalore
Date: 03.09.2015
IMPORTANT COMMUNICATION TO MEMBERS
Across the world, there is an increasing focus on doing our bit to help save our environment from further degradation. The Green initiative is an
attempt to reduce consumption of paper by making use of electronic communication, in turn prevent deforestation and thereby contribute to a cleaner
and healthier environment. It will also ensure prompt receipt of communication and avoid losses in transit.
The Ministry of Corporate Affairs has taken a �Green Initiative in Corporate Governance� by allowing paperless compliances by the Companies and
has issued circulars stating that service of notice / documents including Annual Report can be sent by e-mail to its members. To support this initiative,
we had requested our members last year to register their email-id with their Depository Participant / Company�s Registrar & Share Transfer Agents
which will enable us to provide shareholder communication in electronic form.
In response to our request, several Members have expressed their support to the initiative, by registering their email-id and we express our sincere
appreciation of their gesture. It is once again requested that Members who have not registered their email addresses, so far, to register their email-
id with their Depository Participant / Company�s Registrar & Share Transfer Agents to support this green initiative of the Government in full measure.
Members who hold shares in physical form are requested to fill the appropriate information in the form below and register the same with Karvy
Computershare Private Limited (Unit � HMT Limited), No. 46, Avenue 4, Street No. 1, Banjara Hills, Hyderabad � 500 034.
We are sure that you appreciate the Green Initiative taken up by the Ministry of Corporate Affairs and trust that you will support your Company�s
desire to participate in it.
HMT LIMITEDNo. 59, Bellary Road, Bangalore - 560 032
FORM FOR REGISTERING E-MAIL ID FOR RECEIVING
DOCUMENTS/NOTICES BY ELECTRONIC MODE
In terms of Circular No. 17/2011 dated April 21, 2011 issued by Ministry of Corporate Affairs,
Government of India
Name of the Shareholder
(In Block letters)
including Joint holders, if any
Registered Folio Number/DP 1D/CL ID
Nos.
Email- ID
Signature of the Shareholder
$$
HMT LIMITEDNo. 59, Bellary Road, Bangalore - 560 032
I, hereby record my presence at the 62nd Annual General Meeting at the Registered Office of the Company at
10.30 a.m. on Wednesday, September 30, 2015.
Name of the Attending Member ....................................................................................................................................
(in Block Letters)
DP. Id Members’ Folio Number
Client Id No. of Shares
Name of Proxy .............................................................................................................................................................
(in Block Letters, to be filled in if the Proxy attends instead of the Member).
Member’s/Proxy’s Signature
To be signed at the time of handing over this slip.
(Tear here)
ATTENDANCE SLIP
HMT LIMITEDNo. 59, Bellary Road, Bangalore - 560 032
PROXY FORM
DP. Id Members’ Folio Number
Client Id No. of Shares
I / We .........................................................................................................................................................................
of ................................................................................................................................................................................
being a Member/Members of HMT Limited hereby appoint ...................................................................................
.................................................................................... of ........................................................................................
or failing him ..............................................................................................................................................................
of ...............................................................................................................................................................................
or failing him .............................................................................................................................................................
as my/our Proxy in my/our absence to attend and vote for me/us, and on my/our behalf, at the 62nd Annual General
Meeting of the Company, to be held at 10.30 a.m. on the Wednesday, September 30, 2015 and at any adjournment
thereof.
Signed by the said
Affix
One Rupee
Revenue
Stamp
Note : The Proxy Form must be deposited at the Registered Office of the Company at No. 59, Bellary Road,
Bangalore 560 032, not less than 48 hours before the time for holding the meeting.
$$
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HMT LIMITED
CONTENTS
Board of Directors ............................................................................................................................. 2
Performance Highlights ....................................................................................................................... 3
Directors’ Report ............................................................................................................................. 4
Management Discussions and Analysis ............................................................................................ 11
Annexure to the Director Report ........................................................................................................ 18
Secretrial Audit Report ....................................................................................................................... 31
Certficate on Corporate Governance ................................................................................................. 34
CEO & CFO Certificate ..................................................................................................................... 35
Independent Auditors’ Report ............................................................................................................. 36
Comments of C & AG ........................................................................................................................ 45
Significant Accounting Policies .......................................................................................................... 46
Balance Sheet ........................................................................................................................... 49
Profit & Loss Account ........................................................................................................................ 50
Notes Forming Part of Statement of Accounts .................................................................................. 51
Cash Flow Statement ........................................................................................................................ 73
Consolidated Financial Statements ................................................................................................... 75
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BOARD OF DIRECTORS
Shri. S. Girish Kumar Chairman & Managing Director
Shri. S. K. Bahri Director
Shri. Vishvajit Sahay Director
Shri. P. Sivarami Reddy Director (Operations)
CHIEF VIGILANCE OFFICER
Shri. R. N. Lakshmi Narasimha Chief Vigilance Officer
COMPANY SECRETARY
Shri Subash B. K. Company Secretay
STATUTORY AUDITORS
M/s DOKANIA S KUMAR & CO.
Chartered Accountants
BANKERSUCO Bank
Punjab National Bank
REGISTERED OFFICE“HMT BHAVAN”
59, Bellary Road
Bangalore - 560 032
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2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06
OPERATING STATISTICS
Sales 6147 7971 10095 16112 20086 19164 16098 17108 22729 24833
Other Income * 3247 30518 4756 4658 5475 1078 1425 1267 11458 5621
Materials 3570 6319 5365 12118 13746 12083 10596 14064 15125 17461
Employee Costs 9978 9030 7070 7499 8371 6762 6367 6472 6106 5813
Other Costs 2837 11754 4090 2906 3140 3252 4811 4080 8351 5868
Depreciation 271 340 355 440 387 392 340 299 321 393
Earnings before Interest (7821) 12016 (4135) 735 (16) (3323) (5664) (4466) 3639 900
Interest 1836 1434 10403 8955 7908 1968 1234 131 (409) (455)
Earnings/(Loss) before Tax (9657) 10582 (14538) (8220) (7924) (5291) (6898) (4597) 4048 1355
Taxation (net off withdrawal/refunds) - 1861 - - - - 181 (130) (1382) 28
Net Earnings (9657) 8721 (14538) (8220) (7924) (5291) (7079) (4467) 5430 1327
FINANCIAL POSITION
Net Fixed Assets 2400 2831 3159 3507 3868 4028 4094 3751 3342 3437
Current Assets 64307 67742 68604 70619 65557 72668 71078 73167 112729 111417
Current Liabilities & Provisions 25217 21881 26928 25701 24309 21437 19445 19653 20914 20366
Working Capital 39090 45861 41676 44918 41248 51231 51633 53514 91815 91051
Capital Employed 41490 48692 44835 48425 45116 55259 55727 57265 95157 94488
Investments 76390 76390 76556 76556 76556 76556 76571 76571 76571 7801
Miscellaneous Expenditure - - - - - - 29 197 380 3845
Borrowings 13846 11246 82349 71401 59871 62091 57312 52098 85553 92742
Net Worth 104034 113838 39043 53581 61800 69724 74986 81897 86181 8146
OTHER STATISTICS
Capital Expenditure 8 12 7 81 227 327 681 707 230 556
Internal Resources Generated (9386) 10922 (14183) (7780) (7537) (4899) (6739) (4168) 5751 1720
Working Capital Turnover Ratio 0.16 0.17 0.24 0.36 0.49 0.37 0.31 0.32 0.25 0.27
Current Ratio 2.55 3.10 2.55 2.75 2.70 3.39 3.66 3.72 5.39 5.47
Return on Capital(%) (17.34) 25.70 (8.87) 1.57 (0.03) (5.99) (10.03) (5.86) 3.84 0.93
Employees (Nos) 1421 1434 1442 1699 1904 2088 2205 2296 2383 2429
Capita Sales 4.33 5.56 7.00 9.48 10.55 9.18 7.30 7.45 9.54 10.22
* Includes Extra Ordinary /Exceptional Items
PERFORMANCE HIGHLIGHTS(` in Lakhs)
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DIRECTORS’ REPORT
To
The Members,
HMT Limited
Bangalore
Dear Members,
The Board of Directors have pleasure in presenting the 62nd
Annual Report on the Business & Operations of your
Company and Annual Financial Statements of the Company
for the financial year 2014-15 along with the Auditors’ Report
thereon. The Comments of the Comptroller & Auditor
General of India are attached to this Report.
Financial summary / Performance of the
Company (Standalone)
(` in Crore)
Particulars 2014-15 2013-14
Gross Revenue from Operations 61.47 79.71
Profit Before Depreciation andFinance Costs (75.48) (150.36)
Depreciation 2.71 3.40
Gross Profit/(Loss) (78.19) (153.76)
Finance Cost 18.36 14.34
Net profit before exceptionalItems and PPA (96.55) (168.10)
Add : Exceptional Items - 275.00
Less : Prior Period Adjustments 0.02 1.08
Net Profit before Tax (96.57) 105.82
Provision for Tax - 18.61
Net Profit After Tax (96.57) 87.21
Profit/Loss carried forward toBalance Sheet (96.57) 87.21
BUSINESS SCENARIO
India’s economic growth rate in the current financial year
has recovered to 7.3 per cent, against 6.9 percent of the
previous year. The growth of Gross Value Added (GVA) at
basic prices for agriculture & allied sectors, industrial sector
and services sector are estimated at 0.2 per cent, 6.1 per
cent and 10.2 per cent respectively in 2014-15 as compared
to the corresponding rates of 3.7 per cent, 4.5 per cent and
9.1 per cent respectively in 2013-14.
Overall growth in the Index of Industrial Production (IIP)
was 4.1 per cent during April 2015 as compared to 3.7 per
cent in April 2014. In the year 2014-15, IIP growth was 2.8
per cent as compared to (-) 0.1 per cent in the previous
year. Eight core infrastructure industries registered a
contraction of 0.4 per cent in April 2015 as compared to
growth of 5.7 per cent in April 2014. In the year 2014-15,
these sectors grew by 3.6 per cent as compared to 4.2 per
cent growth in the previous year.
The Growth in gross fixed capital formation (fixed investment)
increased from 3 percent to 4.1 percent in 2014-15.Gross
fixed capital formation (GFCF) as a percentage of GDP
declined from 29.7 per cent in 2013-14 to 28.07percent in
2014-15
Agriculture is the primary source of livelihood for about 58
per cent of India’s population. Agriculture and its allied
services grew at a CAGR of 2.8 per cent from 2007 to 2014.
Rainfall has been excess/normal in 24 sub divisions as
compared to 8 during the corresponding period last year
accordingly to the advanced estimates; agriculture and allied
sector recorded a growth of 3.6 per cent in 2014 and has
fallen short of the 4 per cent growth target
The Performance of two key sectors Capital Goods and
Manufacturing has shown positive trend during financial year
2014-15. The Indian automobile industry showed 8.6 percent
growth in sales ending the fiscal year 2015 on a positive
note which in turn impacts optimistically on the performance
of machine tool industry.
Operating Results
On the Company’s main business portfolio of Tractors, the
market indicators reveal that the industry recorded de-
growth of 12% in terms of quantity. Your Company had to
face severe pressure on performance during the year due
to lack of working capital. Your Company recorded a
Production of ` 53.66Crore (1078Nos. of Tractors) as
against ` 74.11 Crore (1546 Nos. of Tractors), in the
previous year, and Sales of ` 60.28 Crore (1127 Nos. of
Tractors) compared to 78.45 Crore (1488 Nos. of Tractors)
in the previous year.
HMT Group along with its Subsidiaries achieved an
aggregate Production of ` 252 Crore and Sales of ` 277
Crore for the year 2014-15.
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Future Outlook
Tractor Industry in India has shown a negative growth trend
for the last six months of 2014-15 and has ended with a
cumulative negative growth of 12%.
No major relief from the current downswing is expected in
the next three quarters of this financial year. Tractor demand
will depend upon monsoon pattern and Govt. of India’s
Minimum Support Price (MSP) for farm products.
Growth outlook stands at 8 – 9 % CAGR for Tractor Industry
over the next five years as per Tractor Manufacturers
Association (TMA).
Tractor sales are expected to grow by 8-9 per cent CAGR,
over next five years, with falling replacement cycles, stable
farm incomes, and increased focus of the government on
agricultural and rural development.
Two categories 31-40 HP and 41-50 HP sub segments of
Tractors continue to constitute bulk of the tractor market
mainly driven by larger market, suitability of applications
and relatively better affordability of the mix. This mix to
remain largely unaffected over the 18-24 month timeframe
though improving mechanization and increasing exports from
India are likely to aid in enhancing the volume share of sub
30 HP and >51 HP tractors respectively over a longer
horizon.
Monsoon forecasts suggest that rain fall in central India
should be above normal at 105-110%. Rainfall in south and
east and north-east India, too, should be normal. There is
overwhelming evidence to suggest that monsoon this year
will most probably be normal and is hopeful that Tractor
sales may pick up only in second half of the year subject
to monsoon. Tractor industry may accordingly see a growth
phase once again.
The other trend that is evident is increased use of tractors
in infrastructure and construction sectors which has led to
a huge growth in purchase of higher HP tractors. High growth
in this segment is expected to continue because of the
following:
• Replacement demand turning towards higher HP
tractors.
• Increased usage of tractors for non-agricultural
applications across India
The Tractor Industry will continue to grow in the year 2015-
16 due to thrust of Govt. on Agriculture and infrastructure.
The growth drivers of Tractor Industry such as boost in rural
economy, increased focus on agriculture and rural
development, credit availability, shorter replacement cycle,
several policy initiatives by the Government, etc., are aiding
the growth trends.
The Tractor Business Group of your Company has already
initiated a host of measures towards performance
corrections, improvements and further growth. Appointment
of new Distributors and Dealers in potential areas/territories,
up gradation of the tractor engines for compliance to new
emission norms for all models of tractors, entering into
MoU’s with Banks/Financing Agencies for priority loan
sanction/retail financing for the purchase of HMT Tractors,
dynamic business strategies, improved collections on
account of price revision and incentive scheme etc., which
are expected to yield results in the current financial year.
The future plans of your Company envisages plant
modernization and technology Upgradation & Manpower
restructuring which will contribute to better productivity
hence the efficiency and give a thrust to the growth trends
in the coming years.
DIVIDEND & PROVISIONS
Owing to the losses incurred during the year, the Directors
are unable to recommend any dividend on the paid up equity
share capital of the Company.
Share Capital
The Authorised Share Capital of the Company is ` 2100
Crore and Paid up Share Capital is 1420.35 Crore
Fixed Deposits:
The Company did not accept any fixed deposits during the
year, and as such there was no outstanding Fixed Deposits
at the beginning / end of the year.
Enterprise Risk Management:
Establishment of Risk Management System in terms of
Clause 49(VI) of the Listing Agreement and the provisions
of the Companies Act, 2013 is under process.
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Particulars of Employees:
There were no employees of the Company who received
remuneration in excess of the limits prescribed under Rule
5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
SUBSIDIARY COMPANIES
HMT Machine Tools Limited
The Subsidiary achieved Sales of ` 172.15 Crore during
the year against ` 159.02 Crore in the previous year.
Production attained is 181.50 Crore as against 155.56
Crore, in the previous year. Net loss reported is ` 134.94
Crore during the year 2014-15 against a loss of 52.66 Cr.
in previous year.
The Subsidiary has implemented the revival plan proposals
and plant up-gradation. The Subsidiary is also pursuing
with various agencies for extending the reliefs and
concessions sanctioned by the BIFR under the
Rehabilitation Scheme. Some of these Parties including
the Consortium of Banks have preferred appeals against
the reliefs and concessions sanctioned by the BIFR, which
is being contested by the Subsidiary.
During 2013-14 BRPSE reviewed the progress of Revival
Plan Implementation and recognised the need for interim
measures to propel the growth of HMT Machine Tools
Limited which will augur the momentum. Accordingly
recommendation forwarded to the Government was
approved and is under implementation. Infusion of 75 Cr.
Working Capital will have a positive effect on the future
performance.
HMT Watches Limited
This Subsidiary could not show significant improvement in
performance during the year under review. Major factors
affecting the performance of this Subsidiary were paucity
of working capital, erosion of trade channel and high cost
of borrowings. This Subsidiary could achieve a Sales of
` 8.13 Crore including sales through e-portals and
Production of ` 2.69 Crore during the year under review.
The Net Loss for the year stood at 259.20 Crore.
HMT Chinar Watches Limited
The performance of this Subsidiary could not be sustained
at optimum levels due to working capital constraints for
production and as majority of the employees have been
separated on VRS leaving about 32 employees at Srinagar
and Jammu Units of the Subsidiary. Under these
circumstances, the Subsidiary’s Sales was limited to
` 0.90 Crore during the year with NIL Production for the
year. In view of the virtual non operating levels, the
Subsidiary incurred a Net loss of ` 49.05 Cr.
HMT (International) Limited
The Subsidiary achieved a turnover of 33.40 Crore during
the year 2014-15 as against 25.08 Crore recorded in the
previous year 2013-14. The Order procurement during the
year is ` 82.08 Crore as against ` 22.23 Crore achieved
in the previous year. Continuing the trend of achieving profits,
Subsidiary reported Profit Before Tax (PBT) of 1.66 Crore
achieved against ` 0.50 Crore reported in previous year.
The Subsidiary has maintained its consistent dividend
payment record and has recommended a dividend of 20%
for the year 2014-15 on its Paid-up equity share capital
HMT Bearings Limited
During the year under review, the Subsidiary was able to
achieve a Sales of ` 14.75 Crore, against the Previous
Year’s Sales of ` 14.36 Crore. In terms of Production the
Company was able to achieve 14.20 Crore compared to
the Previous Year’s Production of ` 15.04 Crore. Profit
Before Tax registered (-)17.78 Cr. against (-)15.98 Cr.
reported during 2013-14.
ASSOCIATE /JOINT VENTURE COMPANY
SUDMO-HMT Process Engineers (India) Limited
This Joint Venture Company could not transact any
business during the year under review. For the financial
year 2014-15, this Company showed a Profit after tax of
` 1.06 Lakhs only on account of the interest income of
` 3.71 Lakhs, on the fixed deposits kept with the Banks.
Gujarat State Machine Tools Corporation Ltd
This Joint Venture Company between HMT and GIIC Ltd
has discontinued its operations since long. It is therefore
proposed to divest from this Associate Company jointly with
the JV Partner. The process of disinvestment from this
Company, is under consideration by the Company in
consultation with the JV Partner.
CONSOLIDATED FINANCIAL STATEMENTS
As required under the Listing Agreement, Consolidated
Financial Statements of the Company along with that of
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the Subsidiaries for the financial year 2014-15, conforming
to the applicable Accounting Standards, are attached to
this Report along with the Auditors’ Report on the same.
The financial information of these subsidiary Companies
have been furnished as part of the Consolidated Balance
Sheet of the Company. The annual accounts and other
detailed information of each of the Subsidiary companies
will be available for inspection at the Registered Office of
the Company/copy provided on requested by any member.
HUMAN RESOURCE
The employee strength of the Company as on March 31,
2015, stood at 4770 Nos comprising of various categories
of employees in manufacturing plants and other offices in
technical and other professional areas.
The number of employees on the rolls of the Company as
on March 31, 2015 in SC/ST, Ex-servicemen, Physically
Handicapped and Women Employee Categories etc. is
detailed below:
Scheduled Castes 317
Scheduled Tribes 46
Other Backward Classes 105
Ex-Servicemen 5
Persons with Disabilities 15
Women employees 43
Minorities 216
INDUSTRIAL RELATIONS
The overall Industrial Relations situation in the Company
during the year remained cordial.
IMPLEMENTATION OF OFFICIAL LANGUAGE
The efforts towards implementation of Official Language Act,
Rules & Policy as per the directives of the Government in
the Company is continuous. The Official Language
Implementation Committee have been constituted in all the
Units of the Company and the Subsidiaries, including the
Corporate Office at Bangalore to monitor implementation
of Official Language Act, Rules, Policy, etc. which meets
at regular intervals in every quarter.
In order to propagate the usage of Hindi as Official Language,
“HINDI DIWAS/HINDI FORTNIGHT” was observed during
the month of September, 2014. Various competitions in
Hindi such as Hindi Story Writing, Hindi News Paper
Reading, Hindi Quiz Writing, Hindi Conversation, Hindi
Antyakshari, etc., were organized and participants were
awarded prizes. A workshop was organised during the above
period. The Hindi Magazines/Newspapers are being
procured to propagate the usage of Hindi among employees.
The concerned Officials of the Company regularly take part
in the meetings of the Town Official Language
Implementation Committee.
Reporting on progress of Hindi proliferation is being done
periodically on Rajabhasha Vibhag portal.
VIGILANCE ACTIVITIES
The Chief Vigilance Officer appointed by the Government
of India heads the Corporate Vigilance Department of the
Company. Presently the post of Chief Vigilance Officer is
vacant and General Manager (HR) of HMT MTL is holding
the additional charge of CVO as per the directive of Ministry
of Heavy Industry. Chief Vigilance Officer is assisted at
Unit level by exclusively appointed Vigilance Officers.
The Corporate Vigilance Department carries out vigilance
functions in the Holding Company as well as its Subsidiary
Companies. The vigilance functions in the manufacturing
Units and Marketing Offices are looked after by Vigilance
Officers, under the guidance of Chief Vigilance Officer.
All the Unit Vigilance Officers send their monthly Vigilance
/ Inspection Reports and Surprise Inspection reports to CVO.
The reports so received are scrutinized at CVO Office for
further action. Unit Vigilance Officers also verify Annual
Property Returns submitted by the Unit level Officers.
Apart from regular inspections by Unit Vigilance Officers,
CVO conducts CTE type surprise and regular inspections
of high value purchase/contracts and systems by visiting
various Subsidiaries and Units.
Violations of rules and procedures observed during the
inspection of files by CVO/Unit VOs were recorded and
depending upon the seriousness of the deviations, further
actions are taken. Unit Vigilance Officers are advised to
discuss deviations noticed by them during their inspection,
in the quarterly Vigilance Workshop and advice the
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concerned officers that the violations of rules and procedures
pointed out by the Vigilance Department should not be
repeated and should conform to CVC and Company
Purchase Manual guidelines.
Emphasis was laid on preventive vigilance by striving
towards strict adherence to all rules and procedures and
all norms of transparency in tendering process. Based on
CVC’s guidelines for ‘Improving vigilance administration
by leveraging technology and increasing transparency
through effective use of website’ necessary directions
were given by CVO for implementation of the same. Some
of the systems put in place by the Company are:
1. Hosting of all open tenders and high value Limited
Tenders on www.tenders.gov.in (Website of GOI).
2. Publishing details regarding all purchase orders /
contracts concluded in any month and above
the threshold value (presently ` 5.00 lakhs). This
is generally followed by all manufacturing Units.
3. Application form for vendor registration along with
list of items required by different Units of HMT
Limited and Subsidiaries are made available on
Company Website so as to enable the interested
vendors to download the application form and submit
the same to the Unit of their choice.
4. All Managing Directors and Unit Chiefs have been
directed for switching over to e- Procurement
process for all purchases of value ` 2 lakhs and
above and adopt e-payment mode for making all
payments including supplier payments. This is
under implementation.
5. Quarterly vigilance workshops were organized at
all manufacturing units to enhance the level of
vigilance awareness among the employees and
other stakeholders. Vigilance Awareness Week
2014 was observed in all Units and Offices of HMT
Limited and Subsidiary Companies as per the
guidelines of CVC.
The number of inspections including surprise inspections
carried out by CVO and Unit Vigilance Officers along with
the number of property returns scrutinized between April
2014 to March 2015 is tabulated below :-
Inspection Total carried out between April 2014 – March 2015 (by Unit
Vigilance Officers)
Periodic Inspection of Purchase Files 1111
Surprise Inspection 255
Scrutiny of Annual Property Returns 554
Inspections done by CVO (i) HMT Limited Corporate Office, Bangalore (ii) HMT (International) Limited,
(April 2014 to March 2015) Bangalore (iii) HMT MTL Bangalore Complex (MBX), Jalahalli, Bangalore (iv)
HMT MTL Hyderabad (PTH & MTH) (v) HMT MTL Pinjore (vi) HMTL Tractors,
Pinjore.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the
Stock Exchanges, a Report on the Corporate Governance
is annexed as part of this Report along with the Compliance
Certificate from the Auditors. A Report on Management
Discussion and Analysis is also appended to this Report
separately. Further, a declaration by the Chairman &
Managing Director for having obtained affirmation of
compliance of the Code of Conduct by the Board Member
(s) and Senior Management for the year ended March 31,
2015, is also appended.
The Audit Committee could not be reconstituted as per Cl.
49 of the Listing Agreement in the absence of Independent
Directors to be appointed by the Government on the Board.
The Register of Members and Share Transfer Records both
in respect of the shares held in physical and depository
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form are maintained by Karvy Computershare Private
Limited, the Registrars & Share Transfer Agents of the
Company.
INFORMATION REGARDING CONSERVATION OF
ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
Information on conservation of energy, technology
absorption and foreign exchange earnings and outgo. (as
required under the section 134(3)(m) of companies Act. 2013
read with rules 8 of the companies (Accounts) Rules, 2014)
are annexed to this Report.
DIRECTORS RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to
the information and explanations obtained by them, your
Directors make the following statements in terms of Section
134(3)(c) of the Companies Act, 2013:
ü that in the preparation of the annual financial
statements for the year ended 31.03.2015, the
applicable accounting standards has been followed
along with proper explanation relating to material
departures;
ü that such accounting policies have been selected
and applied consistently and judgments and
estimates have been made that are reasonable and
prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the
financial year and of the profit and loss of the
Company for the year ended on that date;
ü that proper and sufficient care has been taken for
the maintenance of adequate accounting records
in accordance with the provisions of the Companies
Act, 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud
and other irregularities;
ü that the annual financial statements have been
prepared on a going concern basis;
ü that proper internal financial controls were in place
and are adequate and were operating effectively;
ü that proper systems to ensure compliance with the
provisions of all applicable laws were in place and
were adequate and operating effectively;
ü Since the overall performance of the Company is
evaluated against the annual MoU targets set by
the Department of Public Enterprises (DPE), no
specific criteria is laid down for the evaluation of
Board and of its Committees and the individual
Directors. Since your Company being a Central
Public Sector Enterprise (CPSE), the personnel
policies and guidelines issued by DPE are being
adopted in line with other CPSEs. Accordingly, your
Company has not formulated any separate policy
in respect of appointment or evaluation of senior
management and key managerial personnel.
Extract of Annual Return
In terms of Section 92(3) of the Companies Act, 2013 read
with Rule 12 of the Companies (Management and
Administration) Rules, 2014, an extract of the Annual Return
in the prescribed form is placed as Annexure -
AUDITORS
M/s Dokaniya S.Kumar & Co., Howrah , were appointed as
Statutory Auditors of the Company for the year 2014-15 by
the Comptroller & Auditor General of India. Three firms of
Chartered Accountants were also appointed as Branch
Auditors for the other Units/Divisions of the Company.
Replies to the observations by the Statutory Auditors in
their Report are given by way of an addendum to this
Report.
Secretarial Audit Report
In terms of Section 204 of the Companies Act 2013 and
Rules made thereunder, Mr. D. Venkateswaralu, Practicing
Company Secretary has been appointed as Secretarial
Auditor of the Company. The report of the Secretarial Auditor
is enclosed as Annexure to this report. along with
management’s response there to.
DIRECTORS
Vide Presidential Order No.5(8)/2010-P.E.X dated February
3, 2015 issued by the Department of Heavy Industry,
Ministry of Heavy Industries and Public Enterprises, Shri
Vishvajit Sahay has been appointed as the Part-time Official
Director of the Company with immediate effect, until further
orders vice Shri. Rajesh Kumar Singh.
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Shri Vishvajit Sahay is proposed for appointment as Director
in terms of Article 67(4) of the Article of Association of the
Company read with Section 160 of the Companies Act,
2013 in the ensuing Annual General Meeting for which a
notice has been received from the Member.
The Board placed on record its appreciation for the valuable
services rendered by Shri R.K.Singh whose term of Office
ended during the year.
Shri P.Sivarami Reddy, Director (Operations) retires by
rotation at the ensuing Annual General Meeting and being
eligible, offeres himself for re-appointment.
ACKNOWLEDGEMENTS
Your Directors are thankful to the various Departments and
Ministries in the Government of India, particularly the
Department of Heavy Industry, Ministry of Corporate Affairs,
Comptroller and Auditor General of India, Principal Director-
Commercial Audit, Statutory and Branch Auditors, various
State Governments, Foreign Collaborators, the Subsidiary
Companies, Suppliers, Reserve Bank of India, the
Consortium of Banks lead by UCO Bank and the valued
Customers of the Company both in India and abroad for
their continued co-operation and patronage.
Your Directors would also like to take this opportunity to
express their appreciation for the contributions made by
the Company’s employees and look forward to their
continued services in pursuit of building a world class Indian
Company.
For and on behalf of the Board of Directors
( S. Girish Kumar)
Chairman & Managing Director
Place: Bangalore
Date: 10-08-2015
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General Economic Environment:
The Indian economy registered a growth rate of 4.4 per
cent in the first quarter (Q1) of 2014-15 where as negative
growth of 13.64 percentage is registered during the first
quarter of current year 2015-16.
Tractor Industry witnessed continuous growth in the years
2009-10, 2010-11 and 2011-12. During the year 2012-13 it
witnessed negative growth of about 3% due to slow down
in Indian economy. During 2013-14 Tractor Industry again
took a big leap and registered 20% growth in domestic
sales.
During 2014-15 tractor industry has once again shown a
negative growth of 12%. Untimely Monsoon, damage to
rabi crops, decline in crop output, lower yields and
weakening crop prices during the current year have
negatively impacted farm sentiments.
M&M maintained their market leadership with 40% market
share followed by TAFE (24%), Escorts (10.5%) and
Sonalika (12%). Further, non-agricultural demand pull has
also remained subdued with slow pick-up in pace of
infrastructure activity.
Exports, however registered a growth of over 20% on back
of growing demand from U.S, near-by markets- especially
Sri Lanka, Bangladesh and parts of Africa. Major market
share is captured by large manufacturers. HMT’s market
share has reduced significantly.
The tractor density of India is about 16 tractors for 1,000
hectares, while the world average is 19 tractors and that of
USA is 27. Clearly, there is significant opportunity for
mechanization of agriculture.
Government of India (GOI) remains committed towards rural
development and agri-mechanisation; besides other factors
like scarcity of farm labour, credit availability, moderate
penetration and shortening replacement cycle continue to
encourage demand for tractors
Opportunities:
• Good demand for Tractors in Indian market and
abroad.
• Demand for higher HP Tractors due to infrastructure
projects.
• Govt. support for rural development and farm
mechanization.
• Demand for I.P engines for Gen. Set, mobile
communication towers and power generation.
• Demand of PTO driven implements like Rotavator
increasing.
FINANCIAL PERFORMANCE
The turnover of the Company for the year 2014-15 was
Rs. 60.28 crore with a net Loss of Rs. 96.57 crore.
The total borrowing by the Company as on 31-3-2015 was
Rs. 116.45 crore or which includes Rs. 72.02 crore Govt. of
India Loan
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has in place adequate systems of Internal
Control commensurate with its size and nature of its
operations. The salient features of internal control systems
are:
• Clear delegation of power with authority limits
for incurring capital and revenue expenditure.
• Well laid down corporate policies for accounting,
reporting and Corporate Governance.
• Safeguarding assets against unauthorized use or
losses or disposition, and ensuring that the
transactions are authorized , recorded and reported
correctly.
• Process for formulating and reviewing annual and
long term business plans have been laid down.
• Detailed Annual budget giving further break up of
monthly targets under various heads.
MANAGEMENT DISCUSSIONS AND ANALYSIS
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• Continuous review of the performance by the Core
Committee with reference to the budgets on an
ongoing basis.
• Compliance with laws and regulations.
The Internal Audit Department of the Company alongwith
the external firms appointed for carrying out internal audits
of Units / Divisions reviews, evaluates and appraises the
various systems, procedures / policies laid down by the
Company and suggests meaningful and useful
improvements.
Internal Audit Department coordinates with the Units /
Divisions of the company for ensuring coverage of all areas
of operations in order to bring a transparency in the whole
spectrum of the Company.
The Audit Committee reviews the Audit Report submitted
by the Internal Auditors. Suggestions for improvement are
considered and the Audit Committee follows up on the
implementation of corrective actions. At present the Audit
Committee has to be reconstituted after appointment of
Independent Directors on the Board by the Government.
The Committee also meets the Company’s statutory Auditors
to ascertain, inter-alia, their views on the adequacy of
internal control system in the Company and keeps the Board
of Directors informed of its major observations from time to
time. Meeting of the Audit Committee could not be held
during the year due to non-reconstitution.
HUMAN RESOURCES
As on 31.03.2015, the Company and its Subsidiaries had
a total workforce of 4770 employees, comprising various
categories of employees in manufacturing plants and other
offices in technical and other professional areas.
The Company has taken suitable measures to bring down
the Personnel Costs by implementing several austerity
measures.
Statistics on the number of employees separated on availing
the VR Scheme in HMT and its Subsidiary Companies during
the last four years is furnished below:
Sl. Organisation No. of employees
No. opted VRS
2011-12 2012-13 2013-14 2014-15 Total
1. HMT Limited - - - - -
2. HMT Machine Tools Ltd. - - - - -
3. HMT Watches Ltd. 124 51 - - 175
4. HMT Chinar Watches Ltd. - 57 18 - 75
5. HMT Bearings Ltd. - - - - -
6. HMT (International) Ltd. - - - - -
Total 124 108 18 - 250
Surplus manpower in certain areas has been deployed
under re-deployment scheme by providing training and re-
training to the employees and posting them at thrust areas
to meet the goals of the organization. The Company is
trying its best to retain the skilled and professionally qualified
personnel to arrest attrition.
PERSONNEL AND INDUSTRIAL RELATIONS
The Personnel and Industrial Relations situation in the
Company during the year remained cordial. 1997 revision
in Pay/Wages have been implemented affected in HMT
Limited and and HMT Machine Tools Limited and 2007
Pay/Wage revision was implemented in HMT (International)
Ltd., with due approval from the Government of India.
CORPORATE GOVERNANCE
In compliance with Clause 49 of the Listing Agreement with
the Stock Exchanges and as per the applicable provisions
of the Companies Act, 2013 as amended from time to time,
your Directors submit their report on the matters mentioned
in the said Clause and practice followed by the Company.
SUBSIDIARY WISE QUALIFICATION DETAILS AS ON 31.3.2015
Unity / IP Engg. Diploma Professionals ITI/ General Others
Subsidiary as on Gradu Holders HR Finance NAC Graduates
31-03-15 ates
HMT 1421 50 129 6 5 845 126 260
Limited
HMT MTL 2218 235 423 15 10 902 144 489
HMT WL 1005 22 97 2 0 69 81 734
HMT CWL 32 - 1 - - 9 1 21
HMT BLH 55 4 12 1 0 20 6 12
HMT(I) L 39 14 3 1 1 - 18 2
TOTAL 4770 325 665 25 16 1845 376 1518
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Attendance particularsNumber of other Directorships and
Name Category
Committee Member/ Chairmanships held
Board AGM / Directorship Committee
Meetings EGMMembership Chairmanship
S.G.Sridhar C & MD - Under Suspension with - -
effect from 15.06.2013
S.Girish Kumar C & MD 9 Yes 7 - -
Antony chacko DOP 1 - 2
P.Sivarami Reddy DOP/DFN (I/c) 5 3
R.K.Singh NENI 8 - 1
S.K.Bahri NENI 8 - 2 2 1
Vishvajit Sahay NENI 1 - 4 - -
C: Chairman & Managing Director, NENI: Non Executive & Non Independent, NEI: Non Executive & Independent.
The Company has been following good Corporate
Governance practices like striking reasonable balance in
the composition of the Board of Directors, setting up of
Audit Committee and other Committees, adequate
disclosure of information and business to be deliberated
by the Board, etc.
I. BOARD OF DIRECTORS
As on March 31, 2015 the Board of Directors comprised of
Chairman & Managing Director I/c, Two part-time Official
Directors and Director I/c (Operations/Finance). Currently
the position of 4 part-time Non Official (Independent)
Directors are vacant.
The day-to-day management of the Company is conducted
by the Chairman & Managing Director and under the
supervision and control of the Board of Directors.
During the year 2014-15, Nine (9) Board Meetings were
held on May 7, June 13, June 20, July 23, August 11,
September 4, October 10,November 11 in the calendar year
2014 and February 12 in the calendar year 2015.
The composition of Directors and their attendance at the
Board Meetings and at other Meetings during the year are:
Brief Resume of Directors proposed for appointment
and re-appointment as per Listing Agreement 49
VIII(E)(1)(a)
Shri Vishvajit Sahay
Shri Vishvajit Sahay aged 48 years is a IDAS 1990 batch.
He has worked in various capacities as Director (Films),
Ministry of Information and Broadcasting, Finance Manager
in Acquisition Wing, Ministry of Defence, Sr. Dy. Controller
General of Defence Accounts (Admn), Joint Controller
General of Defence Accounts and at present he holds a
post of Joint Secretary, Department of Heavy Industry.
Shri Vishavajit Sahay does not hold any shares in HMT Ltd.
SHRI P.SIVARAMI REDDY
Shri P.Sivarami Reddy aged 57 years was inducted as
Director (Operations & Finance) on the Board of HMT with
effect from 26.05.2014. A Mechanical Engineer graduate
with Master in Business Administration in Marketing
Management has served in various capacities for nearly 3
decades in different Units of HMT Group. Before joining
HMT he worked in two private companies in Hyderabad
from 1980 to 1983.
Shri P.Sivarami Reddy does not hold any shares in HMT
Ltd.
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II COMMITTEES OF THE BOARD
A. AUDIT COMMITTEE
In view of the cessation of the Independent Directors and
non induction of new incumbents to these positions, the
Audit Committee could not be duly reconstituted as per
the requirement of the Listing Agreement (Clause 49). As
President of India is the appointing authority for Directors,
Government has been requested to appoint Independent
Directors and Woman Director to comply with Listing
requirements and provisions of Company’s Act, 2013.
Further action for reconstitution of manadatory committees
will be taken after appointment of Independent Directors on
the Board by the Government.
B. REMUNERATION TO DIRECTORS
The details of remuneration of whole time Directors
are given below:
Name of Director Salary Other Total
(` ) Benefits (` ) (` )
Antony Chacko 231296 71354 302650
No sitting fee is payable to any of the directors except
Part-time Non-Official (Independent) Directors. An amount
of Rs.5000/- per meeting for the Board and ` 3000/- for
each Committee Meeting is paid as sitting fee to the Part
time Non-Official (Independent) Director for attending the
Board and Committee Meetings.
• The salary of the whole time Directors does not include
performance-linked incentive except amount payable
as per the productivity linked incentive scheme of the
Company.
C. SHARE TRANSFER SUB -COMMITTEE
The Share Transfer Committee comprises of the Chairman
and Managing Director as a single member to look after
transfer/transmission of shares issued by the Company &
Issue of duplicate certificates, other than confirmation of
dematerialization of shares. Four meetings were held during
the year 2014-15.
Name of the Compliance Officer:
Shri Subash B.K,
Company Secretary
D. SHAREHOLDERS/INVESTORS GRIEVANCE
During the year ended March 31, 2015 there were 28
complaints received from Shareholders which has been
resolved during the year itself.
Number of pending Share Transfers - NIL
III GENERAL BODY MEETINGS
The last three Annual General Meetings were held as under:
Financial Date Time Venue
year
2011-2012 28.09.2012 10.30 a.m
2012-2013 13.12.2013 10.30 a.m
2013-2014 30.09.2014 10.30 a.m
IV DISCLOSURES
i) There were no transactions of material nature with its
Promoters, the Directors or the Management,
their Subsidiaries or Relatives etc., which may have
potential conflict with the interest of the Company at
large.
ii) There were no instances of penalties, strictures
imposed on the Company by the Stock Exchange or
SEBI or any statutory authority on any matter related
to capital markets during the last three years.
iii) The Company is in process of implementing Whistle
Blower Policy mechanism and the same shall be
posted in Website.
V Reconciliation of Share Capital Audit
A qualified practicing Company implementing carried out
a share capital audit to reconcile the total admitted equity
share capital with the National Securities Depository Limited
(NSDL) and Central Depository Services (India) Limited
(CDSL) and the total issued and listed equity share capital.
Registered Office
at No. 59,
Bellary Road,
Bangalore-560 032.
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The audit report confirms that the total issued/paid-up capital
is in agreement with the total number of shares in physical
form and total number of dematerialized shares held with
NSDL and CDSL.
VI SUBSIDIARY COMPANIES
The Minutes of the Board meetings along with a report on
significant developments of the unlisted Subsidiary
Companies are periodically placed before the Board of
Directors of the Company.
VII MEANS OF COMMUNICATION
The Company has published its Quarterly Results as per
the listing requirements in leading newspapers. both in
English & vernaculor language The above results are also
displayed at the Company’s website www.hmtindia.com.
Pursuant to the directions of Securities & Exchange Board
of India (SEBI), the Company has been submitting
documents viz., Shareholding Pattern, Financial Results,
Annual Report etc.
VIII CEO AND CFO CERTIFICATION
In terms of Clause 49 of the Listing Agreement with the
Stock Exchanges, the Certification by the CEO (Chairman
& Managing Director) on the Financial Statements and
Internal controls relating to financial reporting for the financial
year 2014-15 has been obtained and was placed before the
Board.
IX GENERAL SHAREHOLDERS INFORMATION
i) Annual General Meeting September 30, 2015
10.30 A.M at
“HMT Bhavan”
No.59, Bellary Road
Bangalore - 560 032
ii) Financial year April 01, 2014 to
March 31, 2015
iii) Book Closure September22, 2015 to
September 30, 2015
(both days inclusive)
iv) Listing of Shares and 1. Bombay Stock
other Securities Exchange Limited,
Mumbai
2. National Stock
Exchanges of
India Ltd., Mumbai
(Annual Listing Fees for the year have been paid to
the above Stock Exchanges)
v) Stock Code No. 500191
Bombay Stock
Exchange Ltd., Mumbai
National Stock Exchange HMT
of India Limited, Mumbai
ISIN No. INE 262A01018 IN
Registrars & Share M/s. Karvy
Transfer Agents Computershare
Private Limited.
46, Avenue 4, Street
No.1, Banjara Hills,
Hyderabad - 500 034.
vi) Share Transfer System
The Share Transfer Committee of the Board meets at
regular intervals, so that shares lodged for transfer are
registered and dispatched back well within time limit
prescribed in this respect under the listing agreements.
vii) Non-Mandatory Requirements
Being a Government Company, the appointment and
fixation of terms and conditions of appointment of all
Directors are made by the Government of India. The
Company declares that no personnel have been denied
the access to Audit Committee.
As the Company’s financial results are displayed on
the Website of the Company and published in the
Newspapers, they are not separately circulated to all
the shareholders. The Company is making endeavors
to move towards a regime of unqualified financial
statements.
viii) The details of high/low market price of the shares at
the Bombay Stock Exchange Ltd., Mumbai and at
National Stock Exchange of India Ltd., Mumbai are
as under:
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ix) Distribution of Shareholding:
The shareholding distribution of Equity shares as of 31.03.2015 is given below:
Category No. of Cases % of Cases Amount % of Amount
1-5000 19733 88.50 26276590.00 0.35
5001- 10000 1395 6.26 11681660.00 0.15
10001- 20000 604 2.71 9381310.00 0.12
20001- 30000 222 1.00 5741920.00 0.08
30001- 40000 88 0.39 3212420.00 0.04
40001- 50000 74 0.33 3549140.00 0.05
50001- 100000 97 0.44 7152830.00 0.09
100001& Above 85 0.38 7536505530.00 99.12
Total: 22298 100.00 7603501400.00 100.00
Month Quotation at Bombay Stock Quotation at National Stock
Exchange Ltd., Mumbai Exchange of India Ltd., Mumbai
HIGH LOW HIGH LOW
Apr-14 32.4 28.55 32.4 28.65
May-14 52.55 28.5 52.55 28.6
Jun-14 52.3 42.1 52 42
Jul-14 59.15 42.5 59.15 42.85
Aug-14 46.4 40.6 46.8 40.6
Sep-14 43.7 30.3 43.75 30.2
Oct-14 41.3 27.1 41.25 28.35
Nov-14 41.65 33.9 41.6 34.75
Dec-14 62.7 37.1 62.7 34
Jan-15 77.75 46 77.8 47.2
Feb-15 67.75 54 67.7 54.15
Mar-15 61.25 39.2 61.15 39.15
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x) Shareholding Pattern: as on 31/03/2015 (Total )
Shareholders No. of Shares Total Shares % Equity
BANKS 1 550 0.00
CLEARING MEMBERS 106 153168 0.02
FOREIGN INSTITUTIONAL INVESTORS 1 5265 0.00
H U F 454 377476 0.05
INDIAN FINANCIAL INSTITUTIONS 3 40673 0.01
INDIAN MUTUAL FUNDS 11 19000 0.00
BODIES CORPORATES 563 69188512 9.10
NON RESIDENT INDIANS 142 97222 0.01
PROMOTERS 1 684315126 90.00
RESIDENT INDIVIDUALS 21015 6153138 0.81
TRUSTS 1 10 0.00
Total: 22298 760350140 100.00
xi) Dematerialisation of Shares:
The Company’s Shares are compulsorily traded in the
electronic mode from June 26, 2000. As on 31st March
2015, 99.98 % of the Company’s Shares representing
76,02,18,178 equity shares were held in demater-
ialised form and the balance 0.02 % representing
1,31,962 shares were in the physical form.
xii) Plant Locations
The Company’s plants are located at Pinjore in
Haryana, Hyderabad in Telangana and Aurangabad in
Maharashtra, the addresses of which are given below:
Pinjore - 134101
Dist. Panchkula, Haryana
Narsapur Road,
HMT Township P.O., Telangana - 500 854
H-2, MIDC, Chikalthana I.A,
Post Box No. 720, Aurangabad - 431 210
xiii) Address for correspondence:
Registered Office is situated at:
HMT Bhavan, No.59, Bellary Road,
Bangalore - 560 032,
Karnataka, India.
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ANNEXURE TO THE DIRECTORS’ REPORT
1. Conservation of Energy:
Energy Conservation Measures implemented are asfollows :
• Portable Compressors are being run when less air isrequired
• Compressed air leakages plugged, resulting inswitching off one compressor of 120 HP motor.
• Tube light fittings, Fans and compressors are beingswitched off during lunch break and whenever notrequired.
• Air compressor in foundry run only after accumulationof moulding load.
• Work pre-planned for optimum utilization of heattreatment furnaces and paint plant.
• Loading of machines pre-planned.
2. Technology absorption:
Technology enhancement /absorption in Tractordivision is as under :
• Engine up-gradation (phase –I) with technicalassistance from ARAI, Pune: Acceptance test of allfour engines of 27, 37, 40 and 45 HP completed.Type Approval Test has been taken up.
• Development of 25KVA silent DG Set Engine as pernew CPCB Emission norms is under progress atARAI, Pune.
• Design released for Introduction of Dust Boot in gearshifting arrangement to avoid entry of dust and waterin Gear Box.
• Release of modified design for 540 PTO RPM at 1600Engine RPM in 25 to 50 HP tractors for RotavatorApplication.
• Design modification for easy PTO shifting for 25-50HP and 65 HP tractors released.
Design released for side gear shifting for PTO & high/ lowlevers for 25 – 50 FX & DX tractors.
3. Segment wise / Product wise performance:
HP Segment 2014-15 2013-14 2012-13
21-30 91 125 239
31-40 807 921 1310
41-50 122 241 265
Above 50 107 201 191
4. Performance Highlights for the year 2014-15
Operations:
• Introduction and continuous procurement of CEAT
make tyres for all sizes and models, stopping
complete procurement from Birla make from May’
2014 onwards, thus meeting the most urgent need
of Marketing.
• Development and procurement of common MITA lifts
for FX and DX models (2522 to 5022). Pilot supplies
were given in January’ 2015
• Proto supplies of MITA lifts for 6522 model were also
developed and procured in February’ 2015.Regular
procurement will take place after getting satisfactory
performance report from R&D / Assembly.
• Machining of 3-Bore Crankcase for M/s ACE Ltd.,
Palwal (Haryana) taken up in the Crankcase
Manufacturing Line of TRP during the year from
December’ 2014. Till 31st March’ 2015, total 406 nos
crankcases delivered successfully and generated a
revenue of Rs.27.54 Lakhs.
• Alternate sources for critical single source items viz.
Hydraulic pump assembly, Power steering pump
assembly and Ball screw assembly etc. were
successfully developed and regular supplies are being
received.
• As per marketing requirements, SINGLE PIECE
BONNET OF 6522 model was developed and
introduced and nearly 30 sets have already been
received since mid Feb,15.
Research & Development:
Consistent development of Products for the market
expectations can bring about innovations and product
offerings which will further enhance the customer
reach. Investments made in R&D will benefit in
increasing the Turnover.
R&D Expenditure during 2014-15 stands at Rs. 285
lakhs.
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Description 2014-15 2013-14
Capital Nil Nil
Recurring 285 231
Total 285 231
Total R&D Expenditure as % of Turnover 4.73%
5. PLAN FOR 2015-16:
• Development of phase – II (55, 65 and 75 HP) Engines.
• Completion of development of HMT 25 KVA DG set
Engine as per present CPCB Emission norms and
launching of the same.
• Design and development of side gear shifting
arrangement with synchromesh gear drive for 50,65
and 75 HP Tractor models.
• Adoption of MITA Hyd.lift assembly on 6522 Tractor
model and another common MITA Hyd.lift assembly
on FX /DX Tractor model.
• Boosting sales through Distributors – 5 nos. new
distributors will be appointed.
• Dealers’ network would be further extended by
appointing 30 nos. new dealers.
• Financial tie up with commercial banks for retail
finance of Tractors.
• Participation in 20 nos. Agri. Fairs, Organizing 29
nos. sales campaigns and 65 no. free service camps
and 41 other activities like local mechanic meet,
farmers’ training camp – Total 155 such activities
planned during 2015-16.
• Marketing Team to be strengthened by appointing
local young contractual manpower.
• Engagement of skilled manpower in some areas on
contract basis for maximum utilization of Plant /
Production Capacity.
• Emphasis on Preventive Maintenance and Spares
Management for Plant & Machinery to minimize
breakdowns and Production Loss.
• Focus on Critical Tools, Jigs & Fixtures for smooth
flow of In-House Manufactured components.
• Partial out sourcing of Heat Treatment operations due
to limitation of SQF.
• Training of 300 employees in various areas like
Productivity Improvement, Total Quality Management,
Safety, Employee Development, Vigilance awareness
etc
• Awarding contract for ISO 14001-2004 Certification.
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ADDENDUM TO DIRECTORS’ REPORT FOR THE YEAR 2014-15 IN RESPECT OFOBSERVATIONS MADE BY STATUTORY AUDITORS ON THE ACCOUNTS OF HMT LIMITEDFOR THE YEAR ENDED 31ST MARCH 2015.
Ref. STATUTORY AUDITORS’ OBSERVATIONS COMPANY’S REPLY
HMT LIMITED:
CHO:
1. No actuarial valuation has been obtained in respect of HMT Limited (Holding Company) has five Subsidiarycontributions required for Provident Fund liability by the Companies, viz., (1) HMT Machine Tools Limited,Company as per the requirements of AS – 15 “Employee (2) HMT Watches Limited, (3) HMT (International)Benefits”. The amount of contribution to Provident Fund Limited, (4) HMT Bearings Limited and (5) HMTis Rs.26.30 Lakhs during the year under audit. Chinar Watches Limited. The PF Trusts of various
Units of the Subsidiary Companies are located indifferent locations, viz., Bangalore, Pinjore,Hyderabad, Kalamassery, Ajmer, & Srinagar.Further, combination of two or more SubsidiaryCompanies’ PF accounts are being maintained bysingle PF Trust.
1. Tractor Division, Pinjore:
No actuarial valuation has been obtained with respect to Further, the HMT Watch Factory Ranibagh PFthe provisions made for Provident Fund and Outstanding Trust had been taken over by Regional PFamount has been shown amounting to Rs.2,174.38 Lakhs. Commissioner’s Office w.e.f. 01.09.2010.
For implementing Accounting Standard bifurcationof income & expenditure, assets & liabilities of PFTrust is required and since in the PF Trust Account,income & expenditure statement and balancesheets are common for the employees of differentCompanies / Units managed by it, as such , it isvery difficult to bifurcate the same. However allout efforts are being made to compile the requiredinformation for the purpose of actuarial valuation.
2. The amount of Gratuity Provision (Unfunded) to be The Company has separate Gratuity Trust. Therecognized in Balance Sheet as per actuarial valuation Gratuity Trust has taken a Group Gratuity Policyreport is Rs.6,842.12 Lakhs. Whereas as per Note No. 5 with LIC to cover amounts up to Rs.50,000/-& Note No. 9 the aggregate provision amounts to per eligible employee in respect of HMT Limited,Rs.6,857.34 Lakhs. HMT Machine Tools Ltd, HMT Watches Ltd and
Chinar Waches Ltd. As per the Actuarial Valuation,the funds available with LIC is sufficient to meetthe liability as on 31.03.2015.
However, the Un-funded part to cover over & aboveRs.50,000/- is accounted in the respectiveCompany accounts as a percentage to Salaries /Wages, based on Actuarial valuation done by LIC.Accordingly the provision of Rs.6857.34 lakhs isshown as per Note No.5 & 9.
Whereas the Un-funded Gratuity provision as peractuarial valuation by LIC is Rs.6842.12 with aminor difference of Rs.15.22 Lakhs which is only 0.22%.
for and on behalf of the Board of Directors
(S.Girish Kumar)
Chairman & Managing Director
Place : Bangalore
Dated : 10-08-2015
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Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended 31.03.2015
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN : L29230KA1953PTC0748
ii) Registration Date : 7th February, 1953
iii) Name of the Company : HMT LIMITED
iv) Category/Sub-Category of the Company : Company Limited by Shares /
Union Government Company
v) Address of the Registered office : HMT Bhavan, 59, Bellary Road.
and contact details Bangalore – 560 032
Ph.: 91-80-23330333
Fax: 91-80- 23339111
vi) Whether listed company Yes/No : Yes, on NSE& BSE
vii) Name, Address and Contact details : Karvy Computershare Private Ltd
of Registrar and Transfer Agent 46, Avenue 4, Street, Banjara Hills,
Hyderabad - 500 034.
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
Sl. Name and Description of NIC Code of the % to total turnoverNo. main products / services Product/ service of the company
1. Tractors 351105000 90%
2. Food Processing Machinery 353904000 10%
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Sl. Name and address CIN/GLN Holding/ % of
No. of the Company subsidiary/ shares
Joint Venture held
associate
1 HMT Machine Tools Limited U02922KA1999GOI025572 Subsidary 100
2 HMT Watches Limited U33301KA1999PLC025573 Subsidary 100
3 HMT Chinar Watches Limited U29190JK2000PLC002088 Subsidary 100
4 HMT Bearings Limited U29130TG1964FLC001023 Subsidary 99.37
5 HMT (International) Limited U33309KA1974PLC002707 Subsidary 100
6 SUDMO-HMT U05190KA1998PLC024253 Joint Venture 50
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Cate % of % of % Change
-gory Category of Shareholders Demat Physcial Total Total Demat Physcial Total Total During the
Code Shares Shares year
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
(A) PROMOTER AND PROMOTER
GROUP
(1) INDIAN
(a) Individual /HUF 684315126 0 684315126 90.00 684315126 0 684315126 90.00 0.00
(b) Central Government/State 0 0 0 0.00 0 0 0 0.00 0.00
Government(s)
(c) Bodies Corporate 0 0 0 0.00 0 0 0 0.00 0.00
(d) Financial Institutions / Banks 0 0 0 0.00 0 0 0 0.00 0.00
(e) Others 0 0 0 0.00 0 0 0 0.00 0.00
Sub-Total A(1) : 684315126 0 684315126 90.00 684315126 0 684315126 90.00 0.00
(2) FOREIGN
(a) Individuals (NRIs/Foreign Individuals) 0 0 0 0.00 0 0 0 0.00 0.00
(b) Bodies Corporate 0 0 0 0.00 0 0 0 0.00 0.00
(c) Institutions 0 0 0 0.00 0 0 0 0.00 0.00
(d) Qualified Foreign Investor 0 0 0 0.00 0 0 0 0.00 0.00
(e) Others 0 0 0 0.00 0 0 0 0.00 0.00
Sub-Total A(2) : 0 0 0 0.00 0 0 0 0.00 0.00
Total A=A(1)+A(2) 684315126 0 684315126 90.00 684315126 0 684315126 90.00 0.00
NO. OF SHARES HELD AT THEBEGINNING
NO. OF SHARES HELD AT THE ENDOF THE YEAR 31/03/2015
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NO. OF SHARES HELD AT THEBEGINNING
NO. OF SHARES HELD AT THE ENDOF THE YEAR 31/03/2015
Cate & of % of % Change
-gory Category of Shareholders Demat Physcial Total Total Demat Physcial Total Total During the
Code Shares Shares year
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
(B) PUBLIC SHAREHOLDING
(1) INSTITUTIONS
(a) Mutual Funds /UTI 100 18900 19000 0.00 100 18900 19000 0.00 0.00
(b) Financial Institutions /Banks 41555 41555 0.01 4412 4412 0.00 0.00
(c) Central Government / State
Government(s) 0 0 0 0.00 0 0 0 0.00 0.00
(d) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00
(e) Insurance Companies 243700 100 243800 0.03 36711 100 36811 0.00 0.03
(f) Foreign Institutional Investors 5265 0 5265 0.00 5265 0 5265 0.00 0.00
(g) Foreign Venture Capital Investors 0 0 0 0.00 0 0 0 0.00 0.00
(h) Qualified Foreign Investor 0 0 0 0.00 0 0 0 0.00 0.00
(i) Others 0 0 0 0.00 0 0 0 0.00 0.00
Sub-Total B(1) : 290620 19000 309620 0.04 46488 19000 65488 0.01 0.03
(2) NON-INSTITUTIONS
(a) Bodies Corporate 69054859 800 69055659 9.08 69187712 800 69188512 9.10 -0.02
(b) Individuals
(i) Individuals holding nominal share
capital upto Rs.1 lakh 5902053 112739 6014792 0.79 5707585 112162 5819747 0.77 0.03
(ii) Individuals holding nominal share 469180 0 469180 0.06 710867 0 710867 0.09 -0.03
capital in excess of Rs.1 lakh
(c) Others
CLEARING MEMBERS 120952 0 120952 0.02 153168 0 153168 0.02 0.00
NON RESIDENT INDIANS 64801 0 64801 0.01 97222 0 97222 0.01 0.00
TRUSTS 10 0 10 0.00 10 0 10 0.00 0.00
(d) Qualified Foreign Investor 0 0 0 0.00 0 0 0 0.00 0.00
Sub-Total B(2) : 75611855 113539 75725394 9.96 75856564 112962 75969526 9.99 -0.03
Total B=B(1)+B(2) : 75902475 132539 76035014 10.00 75903052 131962 76035014 10.00 0.00
Total (A+B) : 760217601 132539 760350140 100.00 760218178 131962 760350140 100.00 0.00
(C) Shares held by custodians, against which
Depository Receipts have been issued
(1) Promoter and Promoter Group
(2) Public 0 0 0 0.00 0 0 0 0.00 0.00
GRAND TOTAL (A+B+C) : 760217601 132539 760350140 100.00 760218178 131962 760350140 100.00
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(ii) Shareholding of Promoters
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
(IV) Shareholding pattern of top ten Shareholders (other than Directors, Promoters
and Holders of GDRs and ADRs):
No. of % of total %of Shares No. of %of Shares %of Shares % changeShare Shares of Pledged / Share Shares of Pledged / in share
the company encumbered the company encumbered holdingto total shares to total shares during
the year
1 President of India 684315126 90% NIL 684315126 90 NIL NA
Sl. Shareholder�sShareholding at the beginning of the year Share holding at the end of the yearNo. Name
No. of shares% of total shares of
No. of shares% of total shares of the
the company Company
At the beginning of the year 684315126 90% 684315126 90%
Date wise Increase / Decrease in
Promoters Share holding during the
year specifying the reasons for - - - -
increase / decrease (e.g. allotment
/ transfer / bonus/ sweat equity etc):
At the End of the year 684315126 90% 684315126 90%
Shareholding at the beginning Cumulative Shareholdingof the year during the year
Sl. No. NAME/JOINT NAME(S) HOLDING % TO EQT
1 SPECIAL NATIONAL INVESTMENT FUND 67538614 8.88
2 UDAYANKUMAR N KOTHARI / NEETA U KOTHARI 100168 0.01
3 KARVY STOCK BROKING LTD 68283 0.01
4 PACE STOCK BROKING SERVICES PVT LTD 54411 0.01
5 FORTUNE CREDIT CAPITAL LTD 50000 0.01
6 RAJU R. BAXI 45439 0.01
7 UDAYANKUMAR N KOTHARI 44815 0.01
8 SRL IMPEX PVT LTD 40000 0.01
9 THE NEW INDIA ASSURANCE COMPANY LIMITED 36711 0.00
10. BONAZAPORTFOLIO LTD 29746 0.00
TOTAL: 68008187 8.95
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(v) Shareholding of Directors and Key Managerial Personnel:
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding / accrued but not due for payment
Shareholding at the beginning of the year Cumulative Shareholding during the year
For each of the Directors and KMP No. of Shares % of total shares No. of shares % of total sharesof the company of the company
Non of the Directors or Key Managerial Personnel is holding any shares in the company
At the beginning of the year -NIL- -NA- -NIL- -NA-
Date wise Increase / Decrease in
Promoters Share holding during
the year specifying the reasons -NA- No change
for increase/ decrease (e.g.
allotment / transfer / bonus/
sweat equity etc):
At the End of the year -NIL- -NA- -NIL- -NA-
For each of the Directors and KMP Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the
financial year as on 01.04.2014
i) Principal Amount 3154.93 6672.50 9827.43
ii) Interest due but not paid - 1418.10 - 1418.10
iii) Interest accrued but not due - 144.64 144.64
Total (i+ii+iii) 3154.93 8235.24 - 11390.17
Change in Indebtedness during the
financial year -
* Addition - 1946.00 1946.00
* Reduction 128.09 128.09
Net Change 128.09 1946.00 - 1817.91
Indebtedness at the end of the financial
year 31.03.2015
i) Principal Amount 3026.84 8618.50 - 11645.34
ii) Interest due but not paid - 2200.60 2200.60
iii) Interest accrued but not due - 233.32 233.32
Total (i+ii+iii) 3026.84 11052.42 - 14076.26
( ` in lakhs )
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Sl.Particulars of Remuneration Name of MD/WTD/ Manager TotalAmount
no.
1. Gross salary(a) Salary as per provisions contained in
section 17(1) of the Income-tax Act,1961
(b) Value of perquisites u/s17(2) Income-tax Act,1961 Shri. Antony Chacko 252638
(c) Profits in lieu of salary under section 17(3)
Income- tax Act, 1961
2. Stock Option -
3. Sweat Equity -
4. Commission - as % of profit -
- others, specify…
5. Others - Medical 50012
Total (A) 302650
Ceiling as per the Act -
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Whole-time Directors:
B. Remuneration to other Directors:
Independent Directors : The President is the authority for appointment of Directors on the Board of Central
PSU’s and we have requested the Ministry to appoint Independent Directors to constitute mandatory commit-
tees and further to appoint a woman Director to comply with listing requirements and Companies Act 2103
Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
- Fee for attending board/
committee meetings
- Commission
- Others, please specify
Total (1)
Other Non-Executive Directors
Particulars of Remuneration
Total (2)
Total (B)=(1+2)
Total Managerial Remuneration
Overall Ceiling as per the Act
N.A
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C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER /WTD
Sl.Particulars of Remuneration Key Managerial Personnel
No.
Antony Chacko SUBASH B K Total
DOP Company Secretary Rs.
up to May 2014 from June 20, 2014
1. Gross salary(a) Salary as per provisions
contained in section 17(1) of the 302650 608679 911329
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961
(c) Profits in lieu of salary under
section 17(3) Income-tax Act, 1961
2. Stock Option
3. Sweat Equity
4. Commission
- as % of profit
- others, specify…
5. Others, please specify
Total 302650 608679 911329
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
A. COMPANY
Penalty None
Punishment None
Compounding None
B. DIRECTORS
Penalty None
Punishment None
Compounding None
C. OTHER OFFICERS IN DEFAULT
Penalty None
Punishment None
Compounding None
Due to absence/inadequacy of profits the Company Could not take up any CSR Projects for the year 2014-15
Type Section the Brief Details of Penalty / Authority Appeal made,
Companies Act Description Punishment/ [RD/NCLT/ Court] if any
Compounding
fees imposed
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To
The Members
M/s. H.M.T. Limited
(CIN: L29230KA1953PLC000748)
HMT Bhavan, 59, Bellary Road,
Bangalore - 560 032
I have conducted the Secretarial Audit of the compliances
of applicable statutory provisions and the adherence to good
corporate practices by M/s. H.M.T. Limited (hereinafter
called the Company). Secretarial Audit was conducted in a
manner that provided me a reasonable basis for evaluating
the corporate conduct / statutory compliances and
expressing my opinion thereon.
Management’s Responsibility for Secretarial
Compliances:
The Company’s Management is responsible for preparation
and maintenance of secretarial records and for devising
proper systems to ensure compliance with the provisions
of applicable laws and regulations.
Auditor’s Responsibility:
My responsibility is to express an opinion on the secretarial
records, standards and procedures followed by the
Company with respect to secretarial compliances.
I believe that audit evidence and information obtained from
the Company’s management is adequate and appropriate
for me to provide a basis for my opinion.
Based on my verification of the Company’s books, papers,
minute books, forms and returns filed and other records
maintained by the Company and read with the Statutory
Auditors’ Report on Financial Statements and Compliance
of the conditions of Corporate Governance and also the
information provided by the Company, its officers, agents
Form No. MR-3Secretarial Audit Report for the financial year ended 31st March 2015
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
and authorized representatives during the conduct of
Secretarial Audit, I hereby report that in my opinion and to
the best of my information, knowledge and belief and
according to the explanations given to me, the company
has, during the audit period covering the financial year ended
on 31st March 2015 (Audit Period) generally complied with
the applicable statutory provisions listed hereunder and also
that the Company has proper Board - processes and
compliance mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms
and returns filed and other records maintained by
M/s. H.M.T. Limited for the financial year ended on
31st March 2015 according to the provisions of:
1. The Companies Act, 2013 and the rules made there
under;
2. The Securities Contracts (Regulation) Act,
1956(‘SCRA’) and the rules made there under;
3. The Depositories Act, 1996 and the Regulations and
Bye- laws framed there under;
4. Foreign Exchange Management Act, 1999 and the
rules and regulations made there under to the extent
of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings to
the extent applicable to the company - As reported
to us, there were no FDI, ODI or ECB transaction
in the company during the year under review.
5. The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India
Act, 1992(‘SEBI Act’) to the extent applicable to the
company:-
a. The Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;
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29
b. The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 1992;
c. The Securities and Exchange Board of India
(Issue of Capital and Disclosure requirements)
Regulations, 2009.
d. The Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 -
No instances were reported during the year.
e. The Securities and Exchange Board of India
(Issue and Listing of Debt Securities)
Regulations, 2008 - No instances were
reported during the year.
f. The Securities and Exchange Board of India
(Registrars to an issue and Share Transfer
Agents) Regulations, 1993 regarding the
Companies Act and dealing with client - The
Company has appointed a SEBI authorised
Category I Registrar and Share Transfer
Agent.
g. The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009;
- No de-listing was done during the year
h. The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998; - No
buy - back was done during the year.
I have also examined compliance with the applicable
clauses of the following:
a. Secretarial Standards with respect to Board and
general meetings issued by The Institute of
Company Secretaries of India (Since these
Secretarial Standards have come into effect from
1st July 2015), not applicable to the Company
during the audit period under review.
b. Listing Agreements entered into by the Company
with the National Stock Exchange of India Limited
and Bombay Stock Exchange Limited.
During the period under review and as per the explanations
and representations made by the management and subject
to clarifications given to me, the company has generally
complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards etc mentioned above, subject to the
following:
• During the year under review, the company
did not have the required number of non-
executive directors, Independent Directors
and atleast one woman director as on 31st
March 2015 in terms of Section 149(1)/(4) of
the Companies Act, 2013 and Clause 49 of
the Listing Agreement.
However, we were informed that M/s. H.M.T. Limited
is a Government company under the administrative
control of Ministry of Heavy Industries & Public
Enterprises. The nomination and appointment of all
categories of Directors are done by the Government
of India in accordance with the laid down Department
of Heavy Industry Guidelines. The subject matter of
nomination / appointment of adequate number of
Independent directors including woman director falls
under the purview of the Government of India. The
Company has communicated to the Administrative
Ministry with respect to the requirements and were
informed of actions initiated to fulfil the requirements.
• The Company has not appointed Chief
Financial Officer in accordance with the
provisions of Section 203 of the Companies
Act, 2013 during the period under review.
• The Company has not constituted any of the
following Committees:
a. Audit Committee.
b. Remuneration and Nomination
Committee.
c. Shareholders Grievance Committee.
d. Vigil Mechanism.
e. Risk Management Committee.
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• The Company has not submitted to the Stock
Exchanges, Audited Financial Statements for
the financial year 2013-14, within 60 days from
the end of the financial year (Clause 41 of the
Listing Agreement).
• Filing of requisite forms on the MCA Portal,
for some of the Directors, whose nominations
are withdrawn by the Government of India
have not been done so far.
• No actuary valuation has been obtained in
respect of contributions required for
Provident Fund liability by the Company as
per the requirements of AS-15 “Employee
Benefits”.
I further report that:
a. The Board of Directors of the Company is not
duly constituted with proper balance of Executive
Directors and Non-Executive Directors. The
changes in the composition of the Board of
Directors that took place during the period under
review were carried out in compliance with the
provisions of the Act.
b. Adequate notice was given to all the directors to
schedule the Board Meetings, agenda and
detailed notes on agenda were sent at least
seven days in advance, and a system exists for
seeking and obtaining further information and
clarifications on the agenda items before the
meeting and for meaningful participation at the
meeting.
c. Decisions at the Board Meetings, as represented
by the management, were taken unanimously.
d. I further report that as represented by the
Company and relied upon by me there are
adequate systems and processes in the
Company commensurate with the size and
operations of the Company to monitor and ensure
compliance with applicable laws, rules,
regulations and guidelines.
D VENKATESWARLU
Company Secretary
ACS No. 15683: C P No. 7773
Place: Bangalore
Date: 10th August 2015
This Report is to be read along with my letter of even
date which is annexed as Annexure A and Forms an
integral part of this report.
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“Annexure A”
To
The Members
M/s. HMT Limited
(CIN: L29230KA1953PLC000748)
HMT Bhavan, 59, Bellary Road,
Bangalore - 560 032
My report of even date is to be read along with this letter.
1. Maintenance of secretarial records is the responsibility of the management of the Company. My responsibility is
to express an opinion on these secretarial records based on my audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. I believe that the processes and practices, I followed provide a
reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the
company.
4. Wherever required, I have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of the management. My examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy
or effectiveness with which the management has conducted the affairs of the company.
Place: Bangalore D VENKATESWARLU
Date: 10th August 2015 Company Secretary
ACS No. 15683: C P No. 7773
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32
ADDENDUM TO SECRETARIAL REPORT FOR THE YEAR 2014-15 IN RESPECT
OF OBSERVATIONS MADE BY SECRETARIAL AUDITOR ON THE SECRETARIAL
AUDIT OF HMT LIMITED FOR THE YEAR ENDED 31ST MARCH 2015.
Ref. SECRETARIAL AUDITORS’ OBSERVATIONS COMPANY’S REPLY
1.
2.
3.
During the year under review, the company did not have the
required number of non-executive directors, Independent
Directors and atleast one woman director as on 31st March
2015 in terms of Section 149(1)/(4) of the Companies Act,
2013 and Clause 49 of the Listing Agreement.
The Company has not appointed Chief Financial Officer in
accordance with the provisions of Section 203 of the
Companies Act, 2013 during the period under review
The Company has not submitted to the Stock Exchanges,
Audited Financial Statements for the financial year 2013-
14, within 60 days from the end of the financial year (Clause
41 of the Listing Agreement).
As observed by the Audit, H.M.T. Limited is a Gov-
ernment company under the administrative con-
trol of Ministry of Heavy Industries & Public Enter-
prises, the nomination and appointment of all cat-
egories of Directors are done by the Government
of India in accordance with the laid down Depart-
ment of Heavy Industry Guidelines. The subject
matter of nomination / appointment of adequate
number of Independent directors including woman
director falls under the purview of the Government
of India. The Company has requested the Admin-
istrative Ministry to appoint Independent Directors
and also Woman Director to comply with the provi-
sions of Companies Act 2013 and Listing require-
ments.
Additional Charge of the post of the Director Fi-
nance given to Shri P.Sivarami Reddy on
26.05.2014 which extended upto 25.5.2015. Since,
Director Finance is the de-facto CFO there is no
violation as observed by Audit.
The Stock Exchanges were informed that the
Company’s Subsidiaries viz., HMT Machine Tools
Ltd, HMT Watches Ltd, HMT Chinar Watches Ltd,
HMT Bearings Ltd are loss making Companies
and the units are located at different places across
India. There was delay in finalization of the ac-
counts of these Subsidiaries and accordingly Au-
dit. Therefore. there was delay in finalization of
the consolidated financial statements and sub-
mission of same to Stock Exchanges.
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Ref. SECRETARIAL AUDITORS’ OBSERVATIONS COMPANY’S REPLY
4.
5.
6.
The Company has not constituted any of the following
Committees:
• Audit Committee.
• Remuneration and Nomination Committee.
• Shareholders Grievance Committee.
• Vigil Mechanism.
• Risk Management Committee.
Filing of requisite forms on the MCA Portal, for some of the
Directors, whose nominations are withdrawn by the
Government of India have not been done.
No actuary valuation has been obtained in respect of
contributions required for Provident Fund liability by the
Company as per the requirements of AS-15 “Employee
Benefits”.
Consequent to change/cessation of Directors on
the Board, the Government has been requested
to appoint Independent Directors to comply with
the Listing requirements and provisions of Com-
panies Act, 2013. The mandatory committees will
be constituted immediately after appointment of
independent directors on the Board of the Com-
pany
The observation of Secretarial Auditor is noted.
Action will be taken to rectify the same.
This point has been replied in Addendum to Direc-
tors’ Report in respect of observations made by
Statutory Auditors.
(S.Girishkumar)
Chairman & Managing Director
Place: Bangalore
Dated: 10.08.2015
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34
CERTIFICATE ON CORPORATE GOVERNANCETo
The Members of HMT Limited,
We have examined the compliance of conditions of Corporate Governance by HMT Limited for the year ended on 31st
March 2015, as stipulated in clause 49 of the Listing Agreement of the said Company with stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination has
limited to a review of the procedures and implementation thereof adopted by the Company for ensuring compliance with
the conditions of the Corporate Governance as stipulated in the said Clause. It is neither an audit nor an expression ofr
opinion the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and based on the
representations and made by the Directors and the Management, we certify that the Company has complied with the
conditions of Corporate Governance as stipulated in Clause 49 of the above-mentioned Listing Agreement.
We state that such comploiance is neither an assurance as to future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
For M/s. DOKANIA S.KUMAR & CO.
Firm Registration Number : 322919E
CHARTERED ACCOUNTANTS
(CA. Sushil Kumar Dokania)
Partner
Membership No. 057020
DECLARATION BY THE CHAIRMAN & MANAGING DIRECTOR
WITH THE COMPANY’S CODE OF CONDUCT
This is to certify that:
The Company has adopted a Code of Conduct for its employees including the Chairman & Managing Director and Senior
Management. A Code of Conduct for the Board Members and Senior Management and for the Part-time Directors has
been approved by the Board.
The said Code of Conduct has been uploaded on the website of the Company and has also been circulated to the Board
Members and the Senior Management Personnel of the Company; and,
All Board Members, both Full time and Part-time and the Senior Management have affirmed compliance of the said Code
of Conduct, for the year ended March 31, 2015.
(S. Girish Kumar )
Chairman & Managing Director
Place: Bangalore
Date: 09/07/2015
Place: Howrah
Date : 09/07/2015
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CEO & CFO CERTIFICATION
This is to certify to the Board of Directors of HMT Limited that:
a) We have reviewed the financial statements and the cash flow statement for the year 2014-15
and that to the best of our knowledge and belief :
i. these statements do not contain any materially untrue statement or
omit any material fact or contain statements that might be misleading;
ii. these statements together present a true and fair view of the Company’s affairs and
are in compliance with the existing accounting standards, applicable laws and
regulations.
b) There are, to the best of our knowledge and belief, no transactions entered into by the Company
during the year which are fraudulent, illegal or violative of the Company’s code of conduct.
c) We accept responsibility for establishing and maintaining internal controls for financial reporting
and that we have evaluated the effectiveness of internal control systems of the Company
pertaining to financial reporting and we have disclosed to the Auditors and the Audit Committee,
deficiencies in the design or operation of such internal controls, if any, of which we are aware
and the steps we have taken or propose to take to rectify these deficiencies.
d) We have indicated to the Auditors and the Audit committee that :
i. No significant changes in internal control over financial reporting during the year;
ii. No significant changes in accounting policies during the year and same have been
disclosed in the notes to the financial statements; and
iii. no instances of significant fraud of which we have become aware and the involvement
therein, if any, of the management or an employee having a significant role in the
company’s internal control system over financial reporting.
For HMT Limited
Bengaluru P.Sivarami Reddy S.Girish Kumar
DFN/CFO CMD/CEO
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INDEPENDENT AUDITOR’S REPORT
To
The Members of
HMT Limited,
Bangalore
Report on the Standalone Financial Statements:
We have audited the accompanying standalone financial
statements of HMT Limited (the Company), which
comprises of the Balance Sheet as at 31st March 2015,
the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory
information, annexed hereto in which are incorporated the
accounts of Corporate Head Office audited by us and the
accounts of Tractor Division-Pinjore, Food Processing Unit-
Aurangabad and Common Service Division-Bangalore
audited by the Branch Auditors appointed by the C&AG of
India, has been forwarded to us as required by the
Companies Act, 2013, which have been dealt with while
preparing our report in the manner considered necessary
by us.
Management’s Responsibility for the Standalone
Financial Statements:
The Company’s Board of Directors is responsible for the
matters stated in Section 134(5) of the Companies Act ,
2013 (‘the Act’) with respect to preparation and presentation
of these standalone financial statements that give a true
and fair view of the financial position, financial performance
and cash flows of the company in accordance with the
accounting principles generally accepted in India, including
accounting standards specified under section 133 of the
Act read with Rule 7of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility:
Our responsibility is to express an opinion on these
standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are
required to be included in the audit report under the provisions
of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards
on Auditing specified under Section 143(10) of the Act.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free from material misstatement
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend on
the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control
relevant to the Company’s preparation and presentation of
the financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the
accounting estimates made by the Company’s Directors,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the financial statements.
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Basis of our Qualified Opinion
CHO:
1. No actuarial valuation has been obtained in
respect of contributions required for Provident Fund
liability by the Company as per the requirements
of AS – 15 “Employee Benefits”. The amount of
contribution to Provident Fund is ` 26.30 Lakhs
during the year under audit.
2. The amount of Gratuity Provision (Unfunded) to be
recognized in Balance Sheet as per actuary valua
tion report is ` 6,842.12 Lakhs. Whereas as per
Note No. 5 & Note No. 9 the aggregate provision
amounts to ` 6,857.34 Lakhs.
Tractor Division, Pinjore:
1. No actuarial valuation has been obtained with re
spect to the provisions made for Provident Fund
and Outstanding amount has been shown amount
ing to ` 2,174.38 Lakhs
Opinion:
In our opinion and to the best of our information and
according to the explanations given to us, and based on
the consideration of the reports of other Branch Auditors,
except for the effects of the matter described in the “Basis
for Qualified Opinion” paragraph, the aforesaid standalone
financial statements give the information required by the
Act in the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flow for the
year ended on that date,
Other Matters:
1. We did not audit the financial statements of cer
tain branches/units. These have been audited by
other Branch Auditors whose reports have been
furnished to us and our opinion is solely based on
the reports of Other Branch Auditors.
2. The financial statements of Lamp Division have
been merged with CHO Accounts and our report
insofar as it relates to the amounts included in re
spect of this Division is based solely on Closing
Balances of Last Year’s Financial Statement of CHO
Accounts.
3. The Physical share certificates for 26,08,99,037
Equity Shares of M/s. HMT Machine Tools Ltd
having value of 26,089.90 Lakhs and 4,43,00,000
Preference Shares of M/s. HMT Machine Tools Ltd
having value of ` 44,300.00 Lakhs are not in the
possession of the Company.
4. Payments to third parties are being made relating
to SUDMO-HMT Engineering (India) Ltd, an asso
ciate, are paid by the Company against which it
receives the reimbursements from them.
5. The Branch Auditors of Tractor Division, Pinjore have
Reported the following other matters:
a) Balance in Current Maturities of GOI Loans –
Statutory Dues and Working Capital and Bridge
Loan as given in Note – 9 of Balance Sheet
amounting ` 2148.64 Lakhs has been given and
we have relied on the basis of the Certificate
received from the Management.
b) During the year 2014-15, the Management has
declared doubtful debts amounting ` 4410.10
Lakhs which is very high in percentage and full
provision has been made in the Profit & Loss
Account and accordingly, provision has been made
of interest receivable on debts amounting
` 4756.73 Lakhs and we have relied upon the
certificate obtained from the Management.
c) During the year 2014-15, the provision for
obsolesce has been shown by the Company
amounting ` 438.29 Lakhs and we have relied
upon the Certificate received from the Management
of the Company. These matters give an
unmodified opinion on Financial Statements of the
unit.
Report on Other Legal and Regulatory Requirements:
1. As required by Section 143 (5) of the Act, our sub
missions are as under:
a. we give in the Annexure ‘A’, a statement
on the compliance to Directions issued by
the Comptroller and Auditor General of
India
b. we give in the Annexure ‘B’, a statement
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38
on the compliance to specific sub
directions issued by the Principal
Director, Commercial Audit and Ex-Officio
Member, Audit Board, Hyderabad
2. As required by the Companies (Auditor’s Report)
Order, 2015 (‘the Order’) issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the Annexure
‘C’, a statement on the matters specified in the
paragraph 3 and 4 of the Order, to the extent
applicable.
3. As required by Section 143(3) of the Act, we
report that
a) we have sought and obtained all the
information and explanations which to the
best of our knowledge and belief were
necessary for the purposes of our audit.
b) in our opinion, proper books of account
as required by law have been kept by the
Company so far as it appears from our
examination of those books;
c) the Balance Sheet, the Statement of Profit
and Loss and the Cash Flow Statement
dealt with by this Report are in agreement
with the books of account;
d) in our opinion, the aforesaid standalone
financial statements comply with the
Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014
with an exception to those mentioned in
the paragraph of Basis for Qualified
Opinion and Other matters;
e) on the basis of the written representations
received from the directors as on 31 March,
2015 taken on record by the Board of
Directors, none of the directors is
disqualified as on 31 March, 2015 from
being appointed as a director in terms of
Section 164 (2) of the Act; and
f) with respect to the other matters to be
included in the Auditor ’s Report in
accordance with Rule 11 of the
Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our
information and according to the
explanations given to us:
i. the Company has disclosed the impact
of pending litigations on its financial
position in its Financial Statement as
referred to in Note No. 39 (A) to 39 (E) to
the Financial Statement.
ii. The Company has made provision, as
required under the applicable law or
accounting standards, for material
foreseeable losses, if any, and as required
on long-term contracts including
derivative contracts; and
iii. There were no amounts, required to be
transferred, to the Investor Education and
Protection Fund by the Company.
For M/s. DOKANIA S.KUMAR & CO.
Firm Registration Number : 322919E
CHARTERED ACCOUNTANTS
(CA. Sushil Kumar Dokania)
Partner
Membership No. 057020
Place: Howrah
Date: 09 -07-2015
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39
ANNEXURE ‘C’ TO THE INDEPENDENT AUDITORS REPORT
I. a) The company has maintained proper records
showing full particulars, including quantitative
details and situations of Fixed Assets on the
basis of available information.
b) The Company has a regular programme of
physical verification of its moveable fixed
assets by which they are verified in a phased
manner over a period of three years. In
accordance with the programme, some fixed
assets have been verified during the year and
management has confirmed that no material
discrepancies were noticed on such physical
verification when compared with the book
records. In our opinion, the periodicity of three
years is reasonable having regard to the size
of the Company and the nature of its assets.
II. a) The management has conducted physical
verification of inventory at reasonable intervals
during the year. In our opinion the frequency
of verification is reasonable.
b) The procedures of physical verification of
inventory followed by the management are
reasonable and adequate in relation to the size
of the company and nature of its business.
c) The company is maintaining proper records
of inventory and management has confirmed
that no material discrepancies were noticed
on such physical verification when compared
with the book records.
III. a) As informed to us, the company has granted
loans to the bodies corporate, but has not
maintained a register U/s 189 of the
Companies Act, 2013.
b) In the case of granting of loans to body
corporates, the borrowers have been regular
in the payment of interest. The terms of
agreements do not stipulate any repayment
schedule and the loans are repayable on
demand. Accordingly, Sub-Clause (b) of the
Clause (iii) of the Paragraph 3 of the Order is
not applicable.
c) According to the information given to us, there
are no overdue amounts more than Rupees
One Lakh in respect of the loans granted to
the bodies corporate.
IV. In our opinion and according to the information and
explanations given to us, there are adequate internal
control procedures commensurate with the size of
the company and nature of its business for the
purchase of inventory and fixed assets and for the
sale of its goods and services. During the course of
our audit, we have not observed any continuous failure
to correct major weakness in internal control system.
V. According to the information and explanations given
to us, the company has not accepted any deposits
from the public during the year. Hence, the provisions
relating to this clause of the order are not applicable.
VI. The Company has maintained cost records pursuant
to the Rules made by the Central Government under
Section 148 (1) of the Act. On the broad review of
the accounts by the Branch Auditors of Tractor
Division-Pinjore prima facie they are of the opinion
that the prescribed accounts and records have been
made and maintained. The respective Branch
Auditors of Food Procssing Unit, Aurangabad have
broadly reviewed such records and prima facie, they
are of the opinion that the prescribed accounts and
records have been made and maintained.
Maintenance of Cost records is not prescribed at
Corporate Head Office and Common Service Division.
VII. In respect of Statutory Dues:
a) According to the information & explanations
given to us and on the basis of examination of
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the records of the company, undisputed
Statutory dues including provident fund,
employees’ state insurance, income tax,
wealth-tax, service tax, customs duty, excise
duty, value added tax, cess and other material
statutory dues have been generally regularly
deposited with the appropriate authorities.
There are no outstanding amounts of Statutory
dues on account of as on the last date of the
Financial Year concerned for a period of more
than 6 months from the date they became
payable except the following:
The records of CHO, report the irregularities as under:
Sl. Nature of the Nature of Amount Period to which
No. Statute Dues (`) amount related
1. Income Tax* TDS Defaults 349613.95 2014 – 15
2. Income Tax* TDS Defaults 1882503.25 2013- 14
3. Income Tax* TDS Defaults 2059936.74 2012-13
4. Income Tax* TDS Defaults 180257.95 2011-12
5. Income Tax* TDS Defaults 5182992.87 Prior Years
6. Greater Hyderabad Property Tax 5218224.00 Previous Years
Municipal 7815398.00 Arrear Penalty
Corporation 4776018.00 Current Tax
TOTAL 37464944.76
* Income Tax Website
The auditors of Tractor Division, Pinjore reports the irregularities as under:
Sl. Nature of the Nature of Amount Period to which
No. Statute Dues (`) amount related
1. Pinjore Sales Tax Interest on Demand 21773033.00 2001-02 to 2005-06
2. Sales Tax Sales/ VAT Tax 2001521.00 November 2013
-September 2014
3. CPF Provident Fund 49849972.00 Nov 2013 – Sept 2014
4. EPF Provident Fund 52246226.00 Nov 2013 – Sept 2014
5. EPS Provident Fund 3718381.00 Nov 2013 – Sept 2014
6. VPF Provident Fund 28928500.00 Nov 2013 – Sept 2014
7. PF Loan and Interest Provident Fund 53935211.00 Nov 2013 – Sept 2014
8. Professional Tax Professional Tax 10200.00 Nov 2013 – Sept 2014
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41
c) According to the information and explanations given to us, no amounts were required to be transferred to the
investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of
1956) and rules there under.
b) According to the information & explanations given to us, there are no dues outstanding with respect to income-tax,
wealth-tax, service tax, customs duty, excise duty, value added tax or cess on account of any disputes. However,
according to the information and explanations given to us, the following dues of Sales Tax have not been deposited
by the Company on account of disputes:
The Branch Auditors of Food Processing Unit, Aurangabad have reported that there is dues of Sales Tax on
account of dispute and the details are as under:
Sr. No. Name of Authority Amount ( Lakhs) Period
1. Appeal before 2.96 1989-90
2. Joint Commissioner 39.05 1999-00
3. (Appeal), Aurangabad 25.71 2000-01
4. 14.78 2001-02
5. 13.48 2003-04
6. 9.35 2004-05
TOTAL 105.33
Appeal before
Joint Commis-
sioner (Appeal),
Aurangabad
VIII The accumulated losses of the Company are
` 95,828.07 Lakhs (Previous Year-`86,024.58 Lakhs)
at the end of financial year. The Company has incurred
cash losses of 9,385.31Lakhs during the financial
year covered by our audit and no cash losses were
incurred in the immediately preceding financial year.
The said accumulated losses are more than 50% of
its net worth as at the end of the financial year.
IX. In our opinion and according to the information and
explanations given to us, the company has not
continued defaults in repayment of dues to the
financial institutions or banks or Govt of India. Hence,
the provisions relating to this clause of the order are
not applicable.
X. In our opinion and according to the information and
the explanations given to us, the Company has not
given any guarantee for loans taken by others from
banks or financial institutions. Hence, the provisions
relating to this clause of the order are not applicable.
XI According to the information and explanations given
to us by the management and on overall examination
of the Balance Sheet, no term loans were taken by
the company. Hence, the provisions relating to this
clause of the order are not applicable.
XIII. According to the information and explanations given
to us, no material fraud on or by the Company has
been noticed or reported during the year. Hence, the
provisions relating to this clause of the order are not
applicable.
For M/s. DOKANIA S.KUMAR & CO.
Firm Registration Number : 322919E
CHARTERED ACCOUNTANTS
(CA. Sushil Kumar Dokania)
Partner
Membership No. 057020
Place: Howrah
Date: 09/07/2015
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Annexure ‘A’ to the Independent Auditors’ Report
The Annexure referred to in our Independent Auditors’ Report to the members of the Company on the Standalone financial
statements for the year ended 31 March 2015, we report that:
Sl. No. Directions Auditor Observations
1. If the Company has been selected for disinvestment, The Company has not been selected for
a complete status report in terms of valuation of disinvestment.
Assets (including intangible assets and land) and
Liabilities (including Committed & General Reserves)
may be examined including the mode and present
stage of disinvestment process.
2. Please report whether there are any cases of waiver/ No such cases have been noticed by us.The
write off of debts/loans/interest etc., if yes, the Auditors of Tractor Division, Pinjore have reported:
reasons there for and the amount involved. The Unit has written off debts worth `346.90 Lacs
during the Financial Year 2014-15 after obtaining
approval from the Board of Directors.
3. Whether proper records are maintained for inventories No inventories are maintained at CHO Level.
lying with third parties & assets received as gift from Proper records have been maintained for assets
Govt. or other authorities. received as gift from Govt. or other authorities
As per the Report of Branch Auditors, proper
records have been maintained for inventories lying
with third parties & assets received as gift from
Govt. or other authorities.
4. A report on age-wise analysis of pending legal/ As per explanations given to us, there are no
arbitration cases including the reasons of pendency pending legal/ arbitration cases at the CHO
and existence/ effectiveness of a monitoring Level.The age wise analysis of pending legal/
mechanism for expenditure on all legal cases arbitration cases of Other Units are enclosed in
(foreign and local) may be given. ‘Annexure A-1’
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Annexure ‘A-1’ to the Annexure ‘A’ of the Independent Auditors’ Report
The Annexure referred to in Annexure ‘A’ to our Independent Auditors’ Report to the members of the Company on the
Standalone financial statements for the year ended 31 March 2015:
As per Audit Report of Tractor Division, Pinjore:
Year of Lodgement No. of Cases Reason for Pendancy
2014-15 8 Not provided by the Branch Auditor
2013-14 24 Not provided by the Branch Auditor
2012-13 20 Not provided by the Branch Auditor
Prior to 2012-13 114 Not provided by the Branch Auditor
As per Audit Report of Food Processing Unit, Aurangabad:
Year of Lodgement No. of Cases Reason for Pendancy
3331/1995 1 As a result of legal process
56/2002 1 As a result of legal process
272/2002 1 As a result of legal process
115/2010 1 As a result of legal process
21063/2012 2 As a result of legal process
Year of Lodgement No. of Cases Reason for Pendancy
OS 4916/2004 1 Cases being argued as time barred debts and hearing continued.
NDOH for further evidence during 3rd June, 2015 (out of court settlement
is being explored)
SLP 13010/2006 1 Last Listed on during July, 2011
214/2006 1 Argument Stage. Next date of hearing on 01.06.2015
WA 4151/09 arising out Writ Appeal admitted on 20.10.2010 listed on 18.02.2015, case put up
W P No. 4166/08 1 for another bench.
2011 1 Writ petition to be filed in High Court or Dispute before Registrar of
Co. Op. Society
MA 51/2013 1 Next Date of hearing on 20.06.2015
MA 50/2013 1 Next Date of hearing on 20.06.2015
CA 387/2013 1 Not yet listed
As per Audit Report of Common Service Division:
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Annexure ‘B’ to the Independent Auditors’ Report
The Annexure referred to in our Independent Auditors’ Report to the members of the Company on the Standalone financial
statements for the year ended 31 March 2015, we report that:
Sl. No. Directions Auditor Observations
1. Examine and Comment on Compliance of Accounting No actuarial valuation of provident fund is being
Standard – 15 w.r.t. actuarial valuation of provident fund obtained by the Company.
and adequacy of liability provision towards the same
The Auditors of Tractor Division, Pinjore have
reported: During the financial year 2014-15 actuarial
valuation has not been obtained by the Company
with regard to provident fund and outstanding
amount has been shown amounting to 2,174.38
Lacs
2. Examine and comment on the sufficiency and At Corporate Head Office Level, Accounting
consistency of Accounting Policy of the company for Standard – 9 has been properly complied with.
revenue recognition w.r.t. compliance with the
provisions of Accounting Standard-9 (Revenue The Auditors of Tractor Division, Pinjore:The Unit is
Recognition) sufficiently and consistently following the Accounting
Policy of the Company for Revenue Recognition as
per AS-9.
The Auditors of Food Processing Unit,
Aurangabad:The Unit has been consistently
following completed sales and service contract
method for recognition of revenue.
As per Audit Report of Common Service Division:
The unit has been consistently following completed
service contract method of recognition of revenue
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COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION
143(6)(b) OF THE COMPANIES ACT, 2013 ON THE ACCOUNTS OF HMT LIMITED, BANGALORE
FOR THE YEAR ENDED 31 MARCH 2015.
The preparation of financial statements of HMT Limited, Bangalore for the year ended on 31 March 2015 in accordance
with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management
of the Company. The Statutory Auditor appointed by the Comptroller and Auditor General of India under Section 139(5)
of Act, is responsible for expressing opinion on these financial statements under Section 143 of the Act based on the
independent audit in accordance with the Standards on Auditing prescribed under Section 143 (10) of the Act. This
is stated to have been done by them vide their Audit Report dated 09 July 2015.
I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section
143(6) (a) of the Act of the financial statements of HMT Limited, Bangalore for the year ended on 31 March 2015. This
supplementary audit has been carried out independently without access to the working papers of the Statutory Auditors
and is limited primarily to inquiries of the Statutory Auditor and company personnel and a selective examination of
some of the accounting records. On the basis of my audit, nothing significant has come to my knowledge, which would
give rise to any comment upon or supplement to Statutory Auditor’s report.
For and on behalf of the
Comptroller and Auditor General of India
( Pravindra Yadav )
Principal Director of Commercial Audit &
Ex-Officio Member, Audit Board
Hyderabad
Place : Hyderabad
Date : 01 September 2015
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SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of financial statements
The financial statements are prepared as of a going concern,
under the historical cost convention, on accrual basis of
accounting and in accordance with the provisions of the
Companies Act, 2013 and comply with the mandatory
Accounting Standards prescribed under Section 133 of
Companies Act 2013, read with Rule 7 of Companies
(Accounts) Rules 2014, the provisions of the Act (to the
extent notified) and guidelines prescribed by the Securities
& Exchange Board of India (SEBI).
Fixed Assets
Fixed Assets are stated at cost of acquisition or construction,
net of Cenvat credit, less accumulated depreciation to date.
Cost includes direct costs and financing costs related to
borrowing attributable to acquisition that are capitalized until
the assets are ready for use.
Land received free of cost from the State Governments has
been nominally valued and incidental expenditure incurred
thereon has been capitalized.
Expenditure on development of land is included in the cost
of land.
Assets taken on Finance Lease are capitalized at fair value
/ NPV / contracted price. Depreciation on the same is
charged at the rate applicable to similar type of fixed assets
as per Accounting Policy on “Depreciation”. If the lease
assets are returnable to the lessor on expiry of lease period,
the same is depreciated over its useful life or lease period,
whichever is shorter.
Lease payments made are apportioned between finance
charges and reduction of outstanding liability in relation to
assets taken on lease.
Lease payments made for assets taken on Operating Lease
are recognized as expense over the lease period.
Expenditure incurred on Reconditioning of plant, machinery
and equipment which increases the future benefits from
the existing asset beyond its previously assessed standard
of performance is included in the Gross Book Value which
results in:
(a) Modification of an item of plant to extend its useful
life, including increase in its capacity;
(b) Upgrading machine parts to achieve a substantial
improvement in the quality of out-put; and
(c) Adoption of new production processes enabling a
substantial reduction in previously assessed
operating costs.
The cost of an addition or extension to an existing asset
which is of a capital nature and which becomes an integral
part of the existing asset is added to its gross block value.
The expenditure on Reconditioning of plant, machinery &
equipment which do not increase the future benefits from
the existing asset beyond the previously assessed standard
of the performance based on the technical assessment, is
charged off to Revenue.
Items of Capital Assets with WDV of ` 1 lakh and above,
which have been retired from active use, are disclosed at
lower of book value or net realizable value and shown
separately in the Fixed Assets Schedule.
Depreciation
Depreciation on fixed assets is provided on straight line
basis over the useful life of the various assets as prescribed
in Schedule II to the Companies Act, 2013, pro-rata with
reference to the date of addition or deletion. As and when
assets gets fully depreciated, 1/- is retained as book value
of the asset. Assets costing less than ` 10,000/- shall be
depreciated to ` 1/- in the year of purchase.
Depreciation on fixed assets is calculated on a pro-rata
basis from the date of such addition or as the case may be
up to the date on which such asset is sold, discarded or
destroyed.
Useful life specified in the Schedule is for whole of the asset.
Where cost of a part (component) of the asset is significant
to total cost of asset and useful life of that part is different
from the useful life of the remaining asset:-
a. If addition / replacement of the part (component)
enhances the useful life / capacity of the asset,
the useful life shall be reassessed & accordingly
depreciation to be provided;
b. If the addition / replacement of the part (component)
does not enhance the useful life / capacity of the
asset, the same shall be charged to P&L.
Premium for leasehold land is amortized equally over the
period of lease.
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Investments
Investments are either classified as current or long-term.
Current investments are carried at lower of cost and fair
value. Long-term investments are carried at cost and
provisions recorded to recognize any decline, other than
temporary, in the carrying value of each investment. Gain
or loss is recognized in the year of sale.
Inventories
Inventories are valued at the lower of cost and net realizable
value. The cost of materials is ascertained by adopting
Weighted Average Cost Method.
Revenue recognition
Sales are set up based on:
Physical delivery of goods to the customer / customer’s
carrier /common carrier, duly supported by invoice, excise
duty paid challan, gate pass, delivery voucher and LR /
GR, in case of ex-works contracts.
LR/GR obtained and endorsed in favour of customer
(consignee ‘self’), in case of FOR destination contracts.
Despatches to dealers/customers in respect of Machines
& Tractors.
Sales include Excise Duty but are net of trade discount
and exclude sales tax.
Foreign currency transactions
Transactions in foreign currency are recorded in Indian rupee
by applying to the foreign currency amount the exchange
rate existing at the time of the transaction.
The outstanding balances of monetary items relating to
foreign currency transactions are stated in Indian rupee by
adopting the rate of exchange prevailing at the date of
Balance Sheet. Exchange differences consequent to
reinstatement are credited / charged to revenue.
The gain or loss in the conversion and / or settlement of
liabilities incurred for acquisition of fixed assets is either
credited or charged to revenue during the period such gain
or loss arise.
In the case of forward exchange contracts, the premium or
discount arising at the inception of the contract is accounted
for over the life of the contract. Exchange differences on
such a contract are recognized in the statement of profit or
loss in the reporting period in which the exchange rate
changes.
Borrowing costs
Borrowing costs are charged to revenue except those which
are incurred on acquisition or construction of a qualifying
asset that necessarily takes substantial time to be ready
and until intended use of the said asset, such costs are
capitalized.
Employee Benefits
Provident Fund is provided for, under a defined benefit
scheme. The contributions are made to the Trust
administered by the company.
Leave encashment is provided for under a defined benefit
scheme based on actuarial valuation.
Gratuity is provided for, under a defined benefit scheme, to
cover the eligible employees, liability being determined on
actuarial valuation. Annual contributions are made, to the
extent required, to a trust constituted and administered by
the Life Insurance Corporation of India under which the
coverage is limited to 50,000/- per eligible employee. The
balance provision is being retained in the books to meet
any additional liability accruing thereon for payment of
Gratuity.
Settlement allowance is provided for, under a defined benefit
scheme, to cover the eligible employees, liability being
determined on actuarial valuation.
Pension is provided for under a defined contribution scheme,
contributions are made to the Pension Fund administered
by the Government.
Warranty
Warranty provision for contractual obligations in respect of
machines/ tractors sold is set up based on the past
experience and is provided in the year of sale.
Special Tools
Expenditure on manufactured and bought out special tools
are amortized equally over a five year period or earlier, if
scrapped. Individual items costing less than ` 750/- are
written off fully in the initial year of acquisition / manufacture.
Income Tax
Taxes are determined following the tax effect accounting
method and a provision therefore is recognized. A deferred
tax asset or deferred tax liability is recorded to recognize
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the tax effect on timing differences arising on reconciliation
of profit/loss as per financial statements and profit/loss as
per taxation.
Earnings per share
Basic earnings per share is determined by considering the
net profit after tax, inclusive of the post tax effect on
extraordinary items, if any, and the number of shares
outstanding on a weighted average basis.
Government Grants
Government Grants are accounted when there is a
reasonable certainty of their realization. Grants related to
revenue, unless received as compensation for expenses /
losses, are recognized as revenue over the period to which
these are related on the principle of matching costs to
revenue. Grants related to depreciable fixed assets are
adjusted against the gross cost of the relevant assets while
those related to non-depreciable assets are credited to
capital reserve.
Intangible Assets
Intangible assets are capitalized at cost if
(a) It is probable that the future economic benefits that
are attributable to the asset will flow to the
company,
(b) The Company will have control over the assets,
and
(c) the cost of these assets can be measured
realiably.
Technical Know-how
Expenditure on Technical Know-how is recognized as an
Intangible Asset and amortized on straight line method
based on technical assessment for a period not exceeding
ten years. The amortization commences when the asset
is available for use.
Software
The cost of software internally generated / purchased for
internal use which is not an integral part of the related
hardware is recognized as an Intangible Asset and is
amortized on straight line method based on technical
assessment for a period not exceeding ten years.
Research and Development Expenditure
Research Phase:
Expenditure on research including the expenditure during
the research phase of Research & Development Projects
is charged to profit and loss account in the year of
incurrence.
Development Phase:
Expenditure incurred on Development Costs, which relate
to Design, Construction and Testing of a chosen alternative
for new or improved material, devices, products, processes,
systems or services are recognized as an intangible asset.
Such Intangible assets are amortized based on technical
assessment over a period not exceeding ten years using
straight line method.
Impairment of Assets
As at the end of each Balance Sheet date, the carrying
amount of assets is assessed as to whether there is any
indication of impairment. If the estimated recoverable
amount is found less than its carrying amount, the
impairment loss is recognized and assets are written down
to their recoverable amount.
Others
The amount of 50000/- per head received/receivable from
LIC on account of gratuity claims in respect of employees
separated under Voluntary Retirement Scheme during the
year is accounted as Other Income.
In respect of employees who are separated other than under
Voluntary Retirement Scheme, the Gratuity paid in excess
of 50000/-, Earned Leave Encashment (ELE), Settlement
Allowance (SA) is debited to the respective provision
accounts. The provision at the year-end for ELE and SA is
restated as per the actuarial valuation done at the year-
end. In case of ELE and SA, any short or excess provision
is charged as expenditure or treated as provision no longer
required.
Gratuity, Earned Leave encashment, Settlement Allowance
and Lump sum Compensation paid to employees under
Voluntary Retirement Scheme shall be fully written off in
the year of incidence.
Expenses incurred in respect of Bonds issued for raising
funds to meet payments made under the Voluntary
Retirement Scheme are fully written off in the year of
disbursement.
****
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49
BALANCE SHEET AS AT 31ST MARCH 2015
( ` in lakhs )
Note As at As at
No. 31-03-2015 31-03-2014
I EQUITY AND LIABILITIES
1 SHAREHOLDERS’ FUNDS(a) Share Capital 1 18409.16 142035.01(b) Reserves and Surplus 2 (82374.96) (72571.47)
2 SHARE APPLICATION MONEY PENDING ALLOTMENT 3 - 44374.15
3 NON-CURRENT LIABILITIES(a) Long-term Borrowings 4 5831.30 4847.50(b) Long-term Provisions 5 6317.52 6048.73
4 CURRENT LIABILITIES(a) Short-term Borrowings 6 3456.84 3584.93(b) Trade Payables 7 1996.68 3129.16(c) Other Current Liabilities 8 15954.15 11665.06(d) Short-term Provisions 9 5506.16 3850.74
TOTAL 143096.85 146963.81
II ASSETS
1 NON-CURRENT ASSETS(a) Fixed Assets
(i) Tangible Assets 10 2395.96 2810.92(ii) Intangible Assets 10 - 20.56(iii) Capital Work in Progress 10 4.30 -
(b) Non-current Investments 11 76389.86 76389.86(c) Long Term Loans & Advances 12 349.36 322.61
2 CURRENT ASSETS(a) Inventories 13 3421.45 4343.01(b) Trade Receivables 14 2090.30 3096.26(c) Cash and Cash Equivalents 15 1798.43 4373.51(d) Short-term Loans and Advances 16 55352.53 54517.99(e) Other Current Assets 17 1294.66 1089.09
TOTAL 143096.85 146963.81
Significant Accounting PoliciesSee accompanying notes to the financial statements. 1 to 45The accompanying notes form an integral part of the financial statements
Particulars
For and on behalf of the Board As per our Report attached
For M/s. DOKANIA S KUMAR & CO.
F.R.N. 322919E
Chartered Accountants
S. Girish Kumar P. Sivarami Reddy B. K. Subash CA. Sushil Kumar Dokania
Chairman & Managing Director Director (Operations) Company Secretary Partner
(Membership No.057020)Place: New DelhiDate : June 18, 2015
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50
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2015
( ` in lakhs )
Note Year ended Year ended
No. 31-03-2015 31-03-2014Particulars
REVENUE
Gross Revenue from Operations 18 6147.40 7970.58
Less: Excise Duty 119.05 126.23
Net Revenue from Operations 6028.35 7844.35
Other Income 19 3246.56 3018.38
Total Revenue 9274.91 10862.73
EXPENSES
Cost of Materials Consumed 20 3232.32 5933.71
Purchase of Stock-in-Trade 21 337.57 385.50
Changes in Inventories of Finished Goods,Stock-in-Process and Stock-in-Trade 22 649.85 (877.32)
Employee Benefits Expense 23 9978.35 9029.89
Finance Costs 24 1835.62 1433.69
Depreciation & Amortisation Expense 25 271.35 340.16
Other Expenses 26 2716.40 11518.93
Less: Jobs done for Internal use 27 (91.69) (91.85)
Total Expenses 18929.77 27672.71
Profit / (Loss) Before Exceptional and Extrordinary items and Tax (9654.86) (16809.98)
Add : Exceptional Items 28 - 27500.23
Less : Prior Period Adjustments 29 1.80 108.21
Profit / (Loss) Before Tax (9656.66) 10582.04
Tax Expense - 1861.45
Profit / (Loss) for the Period (9656.66) 8720.59
Earnings Per Equity Share: 33
Equity Share of Nominal Value 10/- each
Before Exceptional Items
Basic & Diluted (In `) - (2.21)
After Exceptional Items
Basic & Diluted (In `) - 1.39
After Tax
Basic & Diluted (In `) (0.83) 1.15
Number of Shares in computing Earnings Per Share 1160325355 760350140
Significant Accounting PoliciesSee accompanying notes to the financial statements. 1 to 45The accompanying notes form an integral part of the financial statements
For and on behalf of the Board As per our Report attached
For M/s. DOKANIA S KUMAR & CO.
F.R.N. 322919E
Chartered Accountants
S. Girish Kumar P. Sivarami Reddy B. K. Subash CA. Sushil Kumar Dokania
Chairman & Managing Director Director (Operations) Company Secretary Partner
(Membership No.057020)Place: New DelhiDate : June 18, 2015
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51
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
1 SHARE CAPITAL
AUTHORISED SHARE CAPITAL :
123,00,00,000 (Previous year 123,00,00,000) Equity Shares of ` 10/- each 123000.00 123000.00
8,70,00,000 (Previous year 8,70,00,000) Preference Shares of ` 100/- each 87000.00 87000.00
210000.00 210000.00
ISSUED, SUBSCRIBED & PAID UP
120,40,91,640 (Previous year 76,03,50,140)Equity Shares of `10/- each 120409.16 76035.01
4,43,00,000 (Previous year 4,43,00,000) 3.5% Redeemable Preference
Shares of `100/- each 44300.00 44300.00
2,17,00,000 (previous year 2,17,00,000) 8% Redeemable Preference
Shares of ` 100/- each
21700.00 21700.00
186409.16 142035.01
1.A During the year, 44,37,41,500 Equity Shares were allotted to the President of India on Conversion of Government of
India Loans (Long Term & Current maturity). However, the Shares have not been issued pending in-principle approval
from the National Stock Exchange.
1.B Out of the issued, subscribed & paid-up Equity shares, 3,18,85,900 (Previous year 3,18,85,900) shares are alloted as
fully paid up for consideration other than cash.
1.C The details of Shareholders holding more than 5% Shares.
As at 31-3-2015 As at 31-03-2014Name of the Shareholders
No. of Shares % held No. of Shares % held
Equity Shares:
Hon’ble President of India 1128056626 93.69 684315126 90
3.5% Redeemable Prefernce Shares
Hon’ble President of India 44300000 100 44300000 100
8% Redeemable Prefernce Shares
Hon’ble President of India 21700000 100 21700000 100
1.D The reconciliation of the number of shares outstanding is set out below :
Particulars As at As at
31-03-2015 31-03-2014
No. of Shares No. of Shares
Equity Shares:
Shares at the beginning of the year 760350140 760350140
Add: Shares Issued on account of Conversion of Loan from Govt of India 443741500 -
Shares at the end of the year 1204091640 760350140
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52
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
3.5% Redeemable Preference Shares
Shares at the beginning of the year 44300000 -
Add: Shares Issued under Revival Plan of
HMT Machine Tools Ltd, a Subsidiary - 44300000
Shares at the end of the year 44300000 44300000
8% Redeemable Preference Shares
Shares at the beginning of the year 21700000 -
Add: Shares Issued during in the year - 21700000
Shares at the end of the year 21700000 21700000
2 RESERVES AND SURPLUS
General Reserve
Opening Balance as per last Balance Sheet 13453.11 13453.11
Balance in Statement of Profit & Loss
Opening Balance as per last Balance Sheet (86024.58) (94745.17)
Add: Adjustments relating to Fixed Assets (Refer Note No. 10) (146.83) -
Add: Profit/(Loss) for the year (9656.66) 8720.59
Net Surplus/(Deficit) in the Statement of Profit & Loss (95828.07) (86024.58)
TOTAL (82374.96) (72571.47)
3 SHARE APPLICATION MONEY PENDING ALLOTMENT
Towards Conversion of GOI Loans into Equity Share Capital under
Revival Plan of HMT Limited, approved by Govt. of India. (Share Deposit) - 44374.15
- 44374.15
4 LONG TERM BORROWINGS
SECURED - -
UNSECURED
Loans from Government of India with interest @ 7% to 15.5%,
repayable in 1-5 equal annual installments from the date of drawal of loan 4844.80 3861.00
Amount of continuing default ‘ Nil (Previous year ‘ Nil)
Loans from Dena Bank with interest @ 11.5% p.a upto 31.5.2013
and 15% p.a. till the the date of settlement
Amount of continuing default ‘ Nil (Previous year ‘ Nil) 986.50 986.50
TOTAL 5831.30 4847.50
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53
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
5 LONG TERM PROVISIONS
Provision for Employee Benefits:
Gratuity 5358.24 5190.04
Earned Leave Encashment 667.32 587.44
Settlement Allowance 291.96 271.25
TOTAL 6317.52 6048.73
6 SHORT TERM BORROWINGS
SECURED
Cash Credits 3026.84 3154.93
UNSECURED
Loans from a Subsidiary 430.00 430.00
TOTAL 3456.84 3584.93
Cash Credits as referred to above, are repayable on demand and are secured by hypothecation of entire current
assets of the Company including inventories and Trade Receivables, by first charge and collateral security by
way of equitable mortgage by deposit of title deed of the immovable property of the Company ranking pari passu
inter-se the participating banks. (Amount of contnuing default Nil (Previous year 330.39 lakhs)
7 TRADE PAYABLES
Acceptances - 115.90
Dues towards Goods purchased 1188.49 2616.52
Dues to Micro, Small & Medium Enterprises 808.19 396.74
TOTAL 1996.68 3129.16
7.A The details of amounts outstanding to Micro, Small and Medium Enterprises based on information
available with the Company is as under:
Principal amount due and remaining unpaid 808.19 396.74
Interest due on above and the unpaid interest 532.76 348.58
Interest remaining due and payable in the succeeding year until
the dues are actually paid 0.69 0.60
Interest paid - -
7.B Interest accrued and remaining unpaid at the end of the accounting year. 532.76 348.58
2014-15 184.18 -
2013-14 45.05 45.05
2012-13 83.43 83.43
2011-12 72.58 72.58
2010-11 60.40 60.40
2009-10 55.24 55.24
2008-09 31.24 31.24
2007-08 0.64 0.64
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54
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
8 OTHER CURRENT LIABILITIES
Current maturities of Long-Term Debt
Loans from Government of India 2357.20 1395.00
Interest accrued and due on borrowings
Government of India Loan 634.52 -
Loan from Bank 1566.08 1418.10
Interest accrued but not due on borrowings
Government of India Loan 233.32 144.64
Dues to Subsidiary companies
HMT Chinar Watches Ltd - 0.09
HMT (International) Ltd 17.08 -
Others
Advance received against sales 476.46 393.61
Sundry Creditors - other dues 4209.01 3906.52
Other liabilities 6460.48 4407.10
TOTAL 15954.15 11665.06
9 SHORT TERM PROVISIONS
Provision for Employee Benefits
Gratuity 1499.10 -
Leave Encashment 322.18 167.13
Settlement Allowance 76.49 46.76
1897.77 213.89
Provision for Income Tax 1861.45 1861.45
Provision for Contingencies 315.60 320.60
Provision for Warranty 15.31 32.61
Other Provisions* 1416.03 1422.19
TOTAL 5506.16 3850.74
* Other Provisions include Provision towards 1992 Wage and Salary Revision.
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55
(`
in la
kh
s)
NO
TE
S F
OR
MIN
G P
AR
T O
F B
AL
AN
CE
SH
EE
T
10
FIX
ED
AS
SE
TS
G
ros
s B
loc
k
A
cc
um
ula
ted
De
pre
cia
tio
n
N
et
Blo
ck
Bal
ance
Add
ition
sD
educ
tions
/B
alan
ceB
alan
ceD
educ
tions
/D
epre
ciat
ion
Bal
ance
Bal
ance
Bal
ance
Par
ticul
ars
as a
tA
djus
tmen
tsas
at
as a
tA
djus
tmen
tsdu
ring
the
as a
tas
at
as a
t
01-0
4-20
1431
-03-
2015
01-0
4-20
14ye
ar
31-0
3-20
1531
-03-
2015
01-0
4-20
14
ITa
ng
ible
Ass
ets
Ow
ned
Ass
ets:
Land
& L
and
Dev
elop
men
t
1
80.8
9
-
-
1
80.8
9
-
-
-
-
1
80.8
9
1
80.8
9
Bui
ldin
gs
213
5.14
(18
.39)
2
116.
75
128
6.98
37
.04
41
.41
1
365.
43
7
51.3
2
8
48.1
6
Pla
nt a
nd M
achi
nery
10
975.
39
20.6
3
54.7
6
1094
1.26
9
230.
36
36.9
3
2
22.0
5
948
9.34
1
451.
92
174
5.03
Fur
nitu
re, F
ittin
gs &
Offi
ce A
pplia
nces
459
.90
0
.99
0
.58
460
.31
433
.29
17
.51
5
.70
456
.50
3
.81
26
.61
Tran
spor
t Veh
icle
s
1
53.2
4
16.5
5
1
36.6
9
1
50.7
7
(
16.5
3)
2.0
7
1
36.3
1
0.3
8
2.4
7
Sub
- T
otal
13
904.
56
3.2
3
71.8
9
1383
5.90
11
101.
40
74.9
5
2
71.2
3
1144
7.58
2
388.
32 2
803.
16
Leas
ed A
sset
s:
Land
-Lea
seho
ld
17
.09
-
-
17
.09
9
.33
-
0
.12
9
.45
7
.64
7
.76
Tota
l (A
)
1392
1.65
3
.23
71
.89
13
852.
99
1111
0.73
74
.95
271
.35
11
457.
03
239
5.96
2
810.
92
IIIn
tang
ible
Ass
ets
Des
ign
& P
roto
type
27
.58
27
.58
-
7
.02
(7
.02)
-
-
20
.56
Tota
l (B
)
27.5
8
-
27.5
8
-
7.0
2
(7.0
2)
-
-
-
20.5
6
Tota
l (A
) +
(B
)
1394
9.23
3
.23
99
.47
13
852.
99
1111
7.75
67
.93
271
.35
11
457.
03
239
5.96
2
831.
48
Pre
viou
s Ye
ar
1393
7.08
12
.17
0
.02
13
949.
23
1077
7.61
0
.02
340
.16
11
117.
75
283
1.48
3159
.47
Cap
ital W
ork-
in-P
rogr
ess
4
.30
-
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56
Note
:
(a)
Qu
an
tum
of lo
ss d
ue
to
Im
pa
irm
en
t o
f Asse
ts a
s p
er A
S-2
8 -
Nil
(b)
Ca
pita
l Wo
rk-i
n-P
rog
ress in
clu
de
s M
ach
ine
ry &
Eq
uip
me
nt w
hic
h a
re in
Tra
nsit a
nd
un
de
r In
sp
ectio
n o
r E
rectio
n.
(c)
Pu
rsu
an
t to
en
actm
en
t o
f th
e C
om
pa
nie
s A
ct,
20
13
, th
e c
om
pa
ny h
as a
pp
lied
th
e e
stim
ate
d u
se
ful liv
es a
s s
pe
cifie
d in
Sch
ed
ule
II.
Acco
rdin
gly
, th
e u
na
mo
rtis
ed
ca
rryin
g a
mo
un
t is
be
ing
de
pre
cia
ted
ove
r th
e r
em
ain
ing
use
ful liv
es. T
he
wri
tte
n d
ow
n v
alu
e o
f F
ixe
d
Asse
ts w
ho
se
liv
es w
ere
exp
ire
d a
s a
t 1
st A
pri
l, 2
01
4 h
ave
be
en
ad
juste
d,
in t
he
op
en
ing
ba
lan
ce
of
Sta
tem
en
t o
f P
rofit
an
d L
oss
Acco
un
t o
f `
14
6.8
3 L
akh
s. T
he
De
pre
cia
tio
n fo
r th
e y
ea
r is
low
er
by `
12
.67
lakh
s.
LA
ND
1T
he
Co
mpa
ny is
in p
osse
ssio
n o
f g
ift la
nd
loca
ted
at P
injo
re, K
ala
ma
sse
ry a
nd
Hyd
era
ba
d g
ifte
d b
y th
e re
sp
ective
Sta
te G
ove
rnm
en
ts
ad
me
asu
rin
g 8
22
.67
acre
s, 3
0 a
cre
s a
nd
66
0.7
5 a
cre
s r
esp
ective
ly, n
om
ina
lly v
alu
ed
at
1/-
ea
ch
. T
he
mu
tatio
n o
f T
itle
of la
nd
in th
e
na
me
of th
e C
om
pa
ny is
ye
t to
be
do
ne
.
2T
he C
om
pany is
in p
ossessio
n o
f le
asehold
land m
easuring 3
0 a
cre
s a
t A
ura
ngabad o
ut of w
hic
h 5
acre
s o
f la
nd h
as b
een e
ncro
ached
up
on
. F
urt
he
r, le
ga
l actio
n is
be
ing
pu
rsu
ed
fo
r re
sto
ratio
n o
f th
e e
ncro
ach
ed
lan
d.
3In
re
sp
ect
of
lan
ds a
t H
yd
era
ba
d,
an
are
a a
dm
ea
su
rin
g 2
8.4
0 a
cre
s w
as le
ase
d t
o v
ari
ou
s G
ove
rnm
en
t D
ep
art
me
nts
at
Hyd
era
ba
d.
Pe
nd
ing
re
gis
tra
tio
n o
f tr
an
sfe
r, th
e C
om
pa
ny h
as a
gre
ed
to
re
lea
se
14
.20
acre
s o
f la
nd
in e
xch
an
ge
fo
r 1
4.2
0 a
cre
s o
f la
nd
un
de
r a
n
exch
an
ge
ag
ree
me
nt w
ith
a S
tate
Pu
blic
Se
cto
r U
nd
ert
akin
g. T
he
Co
mpa
ny h
as a
lso
le
ase
d 1
00
0 s
q. ya
rds o
f la
nd
, fo
r w
hic
h le
ase
de
ed
wa
s e
xe
cu
ted
an
d a
gre
ed
to
re
lea
se
an
oth
er
two
acre
s o
f la
nd
to
AP
Po
sta
l De
pa
rtm
en
t in
Hyd
era
ba
d, th
e e
xe
cu
tio
n o
f w
hic
h is
pendin
g. T
he C
om
pany h
as o
bta
ined s
tay fro
m the A
ndhra
Pra
desh H
igh C
ourt
, again
st re
possessio
n o
f 106 a
cre
s a
nd 3
5 g
unta
s o
f land
by th
e G
ove
rnm
en
t o
f A
nd
hra
Pra
de
sh
. N
o fin
alit
y h
as b
ee
n r
ea
ch
ed
on
th
e p
rop
osa
l fo
r su
rre
nd
er
of 3
00
acre
s o
f la
nd
ow
ne
d b
y th
e
Com
pany a
t H
ydera
bad, to
the G
overn
ment of A
ndhra
Pra
desh, in
lieu o
f paym
ent of part
sale
consid
era
tion a
nd is
sue o
f m
ark
eta
ble
title
for th
e b
ala
nce la
nd.
4In
re
sp
ect o
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57
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
11 NON CURRENT INVESTMENTS
Long Term Investments (Unquoted) - Valued At Cost less Permanent
Diminuition in Value of Investments
TRADE INVESTMENTS - -
IN EQUITY SHARES
30,00,000 (Previous year 30,00,000) Ordinary Shares of Naira 1/- each 171.55 171.55
fully paid up in Nigeria Machine Tools Ltd, Nigeria.
20,84,050 (Previous year 20,84,050) Equity Shares of `1/- each fully 20.84 20.84
paid up in Gujarat State Machine Tools Corporation Ltd., Bhavnagar.
1,60,800 (Previous year 1,60,800) Equity Shares of ` 10/- each fully 16.08 16.08
paid up in Andhra Pradesh Gas Power Corporation Limited, Hyderabad.
In Equity Shares of Joint Venture
1,50,000 (Previous year 1,50,000) Equity Shares of 10/- each fully 15.00 15.00
paid up in Sudmo HMT Process Engineers (India) Ltd., Bangalore.
In Equity Shares of Subsidiaries
7,20,000 (Previous year 7,20,000) Equity Shares [ including 6,90,000 3.00 3.00
(Previous year 6,90,000) Bonus Shares] of 10/- each fully paid up in HMT
(International) Ltd, Bangalore
3,74,68,586 (Previous year 3,74,68,586) Equity Shares of 10/- each fully 3746.86 3746.86
paid up in HMT Bearings Ltd., Hyderabad
27,65,99,137 (Previous year 27,65,99,137) Equity Shares of 10/- each 27659.91 27659.91
fully paid up in HMT Machine Tools Ltd, Bangalore
64,90,100 (Previous year 64,90,100) Equity Shares of 10/- each fully 649.01 649.01
paid up in HMT Watches Ltd., Bangalore (Wholly owned Subsidiary Company).
16,60,100 (Previous year 16,60,100) Equity Shares of 10/- each fully paid up 166.01 166.01
in HMT Chinar Watches Ltd., Jammu (Wholly owned Subsidiary Company).
In Preference Shares of Subsidiaries
4,43,00,000 (Previous year 4,43,00,000) 3.5% Redeemable Preference 44300.00 44300.00
Shares of 100/- each fully paid up in HMT Machine Tools Ltd, Bangalore
(Wholly owned Subsidiary Company).
76748.26 76748.26
Less: Provision for dimunition in value of Investment
Nigeria Machine Tools Ltd., Nigeria 171.55 171.55
Gujarat State Machine Tools Corporation Ltd, Bhavnagar 20.84 20.84HMT Chinar Watches Ltd. Jammu 166.01 166.01
358.40 358.40
Total Non Current Investments 76389.86 76389.86
Aggregate amount of Unquoted Investments 76389.86 76389.86
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58
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
11.A HMT Machine Tools Ltd, Bangalore is a BIFR referred Company, and have sought for exemption from payment
of Stamp Duty from the State Government, pending receipt of order from the State Government , the Share
Certificates for 3.5% Preference Shares are not yet issued to HMT Ltd.
12 LONG TERM LOANS AND ADVANCES
Unsecured, Considered Good 349.36 322.61
Capital Advance - -
349.36 322.61
13 INVENTORIES*
Raw Materials and components 895.43 1170.51
Material and components in transit 0.06 18.32
Work-in-progress 1354.94 1818.88
Finished goods # 877.90 1101.88
Stock in Trade 427.10 382.14
Stores and spares 52.67 68.48
Tools and instruments 281.79 289.27
Scrap 24.85 31.74
3914.74 4881.22
Less: Provision for Non-moving Inventories 493.29 538.21
3421.45 4343.01
* Includes stock with C&F Agents / Contractors / Ancillary units /
Customs / in Bonds / at site - 8.56
# Includes Excise Duty paid/payable 8.67 10.65
14 TRADE RECEIVABLES*
UNSECURED
Trade receivables outstanding for a period exceeding six months
from the date they are due for payment:
- Considered good 1988.66 2234.26
- Considered doubtful 4458.77 4353
6447.43 6587.59
Less: Provision for doubtful debts 4458.77 4353.33
1988.66 2234.26
Others
Considered good 101.64 862.00
2090.30 3096.26
*Debts due by firms or Private Companies in which any Director, - -
Officer is a Partner or a Director or a Member
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59
16 SHORT TERM LOANS AND ADVANCES*
UNSECURED
Loans to Subsidiary Companies
Considered Good
HMT Machine Tools Ltd 1148.68 1115.41
HMT Watches Ltd 49416.41 48161.62
Considered Doubtful
HMT Chinar Watches Ltd 8265.82 8108.91
58830.91 57385.94
Less:Provision for doubtful loans 8265.82 8108.91
Sub-Total 50565.09 49277.03
Advances to Subsidiary Companies
Considered Good
HMT Machine Tools Ltd 401.47 575.63
HMT Watches Ltd 2403.87 2368.53
HMT Chinar Watches Ltd 0.22 -
HMT Bearings Ltd 80.30 89.36
HMT (International) Ltd - 34.06
Sub-Total 2885.86 3067.58
Advances Recoverable In Cash Or In Kind Or For Value to be received:
Secured
Considered Good 0.47 0.46
Unsecured
Considered Good # 1740.68 1996.07
Considered Doubtful 113.13 113.38
1853.81 2109.45
Less:Provision for Doubtful Advances 113.13 113.38
Sub-Total 1740.68 1996.07
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
15 CASH AND CASH EQUIVALENTS
Cash and Cheques on hand 3.34 3.57
Balance with Banks in Current account 137.04 2793.50
Balance with Banks in Deposit account* 1658.05 1576.44
1798.43 4373.51
* Deposits with Maturity Period Less than 3 Months as on 31st March 158.46 -
* Deposits with Maturity Period More than 3 Months and Less than 12 Months 1499.59 1576.44
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60
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
Other Advances
Unsecured
Considered Good
Balance with Collectors of Customs, Central Excise, etc., 2.71 5.90
Deposits 121.20 150.06
TDS Receivable 36.52 20.89
Sub-Total 160.43 176.85
TOTAL 55352.53 54517.99
*Debts due by firms or Private Companies in which any Director,
Officer is a Partner or a Director or a Member - -
# Includes advances to suppliers, prepaid expenses, MODVAT Credit to be availed, etc.
17 OTHER CURRENT ASSETS
Special Tools 81.18 85.17
Interest on Trade Receivable 5970.24 6190.76
Less: Provision for interest on Trade Receivable 4756.76 5186.84
1213.48 1003.92
TOTAL 1294.66 1089.09
18 GROSS REVENUE FROM OPERATIONS
Sale of Products *
Tractors 4832.84 6241.07
Food Processing Machinery 487.52 738.00
Accessories 176.32 169.73
Sale of Services
Sundry Jobs and Miscellaneous Sales 643.13 813.37
Packing / Forwarding charges 7.59 8.41
TOTAL 6147.40 7970.58
* Nett of Trade Discount
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61
NOTES FORMING PART OF STATEMENT OF PROFIT AND LOSS
NoteParticulars
Year ended Year ended
No 31-03-2015 31-03-2014
19 OTHER INCOME
Servicing Income 7.92 4.41
Recoveries from Staff/Others 146.84 133.58
Royalties from Subsidiaries 7.95 2.25
Rent Received 501.28 437.25
Profit on Sale of Assets 11.99 0.02
Interest Income
On Bank Deposits 117.13 159.93
Interest from subsidiaries on HC Loans 1463.96 1463.96
Interest from Dealers/Others 127.29 271.53
Dividend from Subsidiaries 7.20 14.40
Provisions no longer required withdrawn 628.12 165.35
Grant received from GOI - 17.09
Other Non Operating Income* 226.88 348.61
TOTAL 3246.56 3018.38
* Includes Training Expenses recovered, disposal of Scrap, Freight & Insurance Recoveries
20 COST OF MATERIALS CONSUMED
Raw materials and Components
Opening Stock 1170.51 976.73
Purchases 2957.24 6127.49
4127.75 7104.22
Less: Closing Stock 895.43 1170.51
Cost of Materials Consumed 3232.32 5933.71
20.A PARTICULARS OF MATERIALS CONSUMED:
Steel 194.82 100.90
Non-ferrous Metals 2.11 6.04
Ferrous Castings 341.76 518.50
Non-ferrous Castings 3.03 15.92
Forgings 307.48 499.12
Standard parts 108.80 374.80
Components 2274.32 4414.16
Others - 4.27
TOTAL 3232.32 5933.71
( ` in lakhs )( ` in lakhs )
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62
NOTES FORMING PART OF STATEMENT OF PROFIT AND LOSS
NoteParticulars
Year ended Year ended
No 31-03-2015 31-03-2014
( ` in lakhs )
21 PURCHASES OF STOCK IN TRADE
Purchases of Tractor Spares 337.57 385.50
337.57 385.50
22 CHANGES IN INVENTORIES OF FINISHED GOODS,
STOCK IN PROCESS & STOCK IN TRADE
Finished Goods
Closing Balance 877.90 1101.88
Opening Balance 1101.88 916.65
223.98 (185.23)
Scrap
Closing Balance 24.85 31.74
Opening Balance 31.74 21.76
6.89 (9.98)
Work in Progress
Closing Balance 1354.94 1818.88
Opening Balance 1818.88 1133.34
463.94 (685.54)
Stock in Trade
Closing Balance 427.10 382.14
Opening Balance 382.14 385.57
(44.96) 3.43
TOTAL 649.85 (877.32)
Details of Work-in-Progress
Tractors & its parts 1271.52 1689.94
Food Processing Machines 83.42 128.94
1354.94 1818.88
23 EMPLOYEE BENEFIT EXPENSES *
Salaries,Wages and Bonus 6474.64 6045.44
House Rent Allowance 216.19 205.34
Gratuity 1748.21 1315.07
Contribution to PF & FPS 728.45 669.87
Deposit Linked Insurance 17.32 11.13
Contribution to ESI 0.60 0.94
Welfare Expenses 792.94 782.10
9978.35 9029.89
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63
NOTES FORMING PART OF STATEMENT OF PROFIT AND LOSS
NoteParticulars
Year ended Year ended
No 31-03-2015 31-03-2014
( ` in lakhs )
* Includes
- Wages for repairs to machinery 303.29 266.14
- Payments relating to Directors (including Chairman & Managing Director)
Salaries 2.31 17.47
Provident Fund 0.21 1.44
Gratuity 0.50 2.92
Medical - 0.61
24 FINANCE COSTS
Interest Expense
Government of India Loans 723.20 144.64
Cash Credit loans from Banks 415.28 402.09
Loans from Bank 147.98 -
HMT Bonds - 316.40
Inter Corporate Loan 43.00 43.00
Short Term Loan from Bank - 167.88
Others 473.80 297.11
Other Borrowing Cost
Finance Charges 19.55 14.42
Bank / Discounting Charges 12.81 48.15
1835.62 1433.69
25 DEPRECIATION AND AMORTISATION EXPENSE
Depreciation 271.35 337.40
Amortisation of Intangible Assets - 2.76
271.35 340.16
26 OTHER EXPENSES
Manufacturing Expenses
Consumption of Stores,Spares,Tools & Pkg.Matls.* 235.50 380.41
Power and Fuel 348.94 477.78
Excise Duty 1.88 2.34
Repairs to machinery 8.80 16.46
Amortisation of Special Tools 95.69 102.96
Provision for Non Moving Inventories 11.34 49.10
Selling & Distribution Expenses
Rebate on Sales 144.45 129.85
Advertisement and Publicity 32.47 34.91
Carriage outwards 162.94 194.12
Establishment Expenses
Rent 27.49 29.63
Rates and Taxes 174.17 230.61
Insurance 24.83 23.61
( ` in lakhs )
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64
NOTES FORMING PART OF STATEMENT OF PROFIT AND LOSS
NoteParticulars
Year ended Year ended
No 31-03-2015 31-03-2014
Water and Electricity 364.12 368.12
Repairs to building 5.82 19.40
Printing and Stationery 18.57 21.94
Auditors Remuneration # 3.11 4.45
Provision for loss in value of investment - 166.01
Provision for Doubtful Debts,Loans and Advances 368.60 8544.51
Warranty claims 28.30 46.90
Loss sustained by PF Trust 4.71 1.50
Bad Debts / Advances written off 346.90 236.78
Travelling Expenses 108.32 113.45
Other Expenses 538.57 532.05
Less: Recovery of Common Expenses from Subsidiary Companies (339.12) (207.96)
2716.40 11518.93
* Includes Stores and Spare parts for:
Repairs to Machinery 0.23 2.60
# As Auditor 2.20 2.20
For taxation matters 0.29 0.29
For other services 0.15 0.23
Reimbursement of expenses 0.37 1.12
Service tax 0.10 0.18
Cost Audit Fee & expenses - 0.43
3.11 4.45
27 JOBS DONE FOR INTERNAL USE
Shop manufactured Special Tools (91.69) (91.85)
(91.69) (91.85)
28 EXCEPTIONAL ITEMS
Income
Interest Waiver on GOI Loans upto 31.3.2012 - 20187.24
Withdrawal of Interest on GOI Loans 2012-13 - 8554.14
Interest Waivers under One Time Settlement - 975.40
Guarantee Fee Waiver - 375.92
- 30092.70
Less: Expenses
Reversal of Income on land sale reversal - 986.41
Interest on Loan from Bank - 1418.10
Guarantee fee expenses - 187.96
- 2592.47
Total - 27500.23
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65
29 PRIOR PERIOD ADJUSTMENTS
Materials - 0.18
Employee Benefit expenses - 3.41
Other Expenses 2.74 104.62
2.74 108.21
Less:
Other Income 0.94 -
1.80 108.21
30 VALUE OF IMPORTS ON CIF BASIS WITH RESPECT TO:
Raw Materials - -
Components and Spare Parts 31.32 5.24
Capital Goods - -
31 EXPENDITURE IN FOREIGN CURRENCY :
Royalty, Know how - -
Professional and Consultation Fees - -
Interest - -
Other Matters - -
32 EARNINGS IN FOREIGN CURRENCY
Sale of Dairy Machinery 4.75 53.24
33 EARNINGS PER SHARE
i) Net Profit/(Loss) after Tax as per Statement of
Profit and Loss attributable to Equity Shareholders (‘ in lakhs) (9656.66) 8720.59
ii) Weighted Average number of Equity Shares used as denominator
for calculating EPS 1160325355 760350140
iii) Basic and Diluted Earnings per Share (Rs.) (0.83) 1.15
iv) Face Value per Equity Share (`) 10 10
34 CONSUMPTION OF RAW MATERIALS, COMPONENTS, STORES & SPARE PARTS:
Imported ` in lakhs 8.82 61.02
% 0.25 0.97
Indigenous ` in lakhs 3459.00 6253.10
% 99.75 99.03
35 The Company is carrying on the business of manufacturing and selling Tractors and Food Processing Machines.
The Segment Reporting as per AS-17 is not applicable to HMT Limited, as the transactions of Food Processing
Machinery is less than 10% of Total Business.
NOTES FORMING PART OF STATEMENT OF PROFIT AND LOSS
NoteParticulars
Year ended Year ended
No 31-03-2015 31-03-2014
( ` in lakhs )
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66
36 FUNCTIONAL DISCLOSURE OF THE STATEMENT OF PROFIT & LOSS
Particulars
Revenue From Operations 6,028.35 7,844.35
Less: Cost of Materials Consumed 3,232.32 5,933.71
Less: Purchase of Stock-In-Trade 337.57 385.50
Less: Changes in Inventories of Finished Goods, Stock-in-Process &
Stock-in-Trade 649.85 (877.32)
Less: Manufacturing Expenses 702.15 1,029.05
Gross Profit 1,106.46 1,373.41
Less: Selling & Distribution Expenses 339.86 358.88
Less: Establishment Expenses 1,674.39 10,131.00
Add: Jobs done for Internal use 91.69 91.85
Operating Profit before Depreciation, Interest & Tax (816.10) (9,024.62)
Less: Depreciation & Amortization Expense 271.35 340.16
Operating Profit before Interest & Tax (1,087.45) (9,364.78)
Less: Finance Costs 1,835.62 1,433.69
Less: Employment Expenses 9,978.35 9,029.89
Operating Profit before Tax & Exceptional Items (12,901.42) (19,828.36)
Add: Other Income 3,246.56 3,018.38
Profit before Tax & Exceptional Items & Prior period adjustments (9,654.86) (16,809.98)
Less: Exceptional Items & Prior period adjustments 1.80 (27,392.02)
Profit before Tax (9,656.66) 10,582.04
Less: Current Tax Expense - 1,861.45
Profit After Tax (9,656.66) 8,720.59
NOTES FORMING PART OF STATEMENT OF PROFIT AND LOSS
NoteParticulars
Year ended Year ended
No 31-03-2015 31-03-2014
( ` in lakhs )
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67
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
37 DISCLOSURE REGARDING PROVISIONS:
Provision in respect of present obligations arising out of past events are made in the Accounts based on reasonable
estimates of the obligations. Provision for Warranty is made as per the Accounting Policy.
The details of provision for Warranty claims are furnished below:
(` in Lakhs)
Opening Balance as on 1.4.2014 32.61
Additions during 2014-15 3.12
Total 35.73
Less: Used during 2014-15
Utilised 5.59
Withdrawn 14.83 20.42
Closing Balance as on 31.3.2015 15.31
38 RELATED PARTY TRANSACTIONS & DISCLOSURE U/S 186 OF THE COMPANIES ACT, 2013
Sr. No. Name of Related Party Relationship
1 HMT Machine Tools Ltd, Bangalore (MTL) Subsidiary
2 HMT Watches Ltd, Bangalore (HWL) Subsidiary
3 HMT Chinar Watches Ltd, Jammu (CWL) Subsidiary
4 HMT (International) Ltd, Bangalore (HMT(I) Subsidiary
5 HMT Bearings Ltd, Hyderabad (BLH) Subsidiary
6 SUDMO HMT Process Engineers (India) Ltd, Bangalore Joint Venture
7 Mr. S. Girish Kumar Key Managerial Personnel
8 Mr. P. Sivarami Reddy Key Managerial Personnel
9 Mr. B.K. Subash Key Managerial Personnel
10 Mr. Antony Chacko Ex-Key Managerial Personnel
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68
Tran
sact
ion
s d
uri
ng
the
year
wit
h R
elat
ed P
arti
es:
a)L
oan
s an
d A
dva
nce
s g
iven
an
d r
epay
men
t th
ereo
f:
Na
me
of
Re
late
d P
art
yA
s a
tO
pen
ing
Lo
an
sR
ep
ay
me
nt
Inte
rest
Clo
sin
g
Ba
lan
ce
Giv
en
Ba
lan
ce
Lo
an
s
HM
T M
ach
ine
To
ols
Ltd
31/0
3/2
015
1115.4
1 -
-33.2
711
48.6
8
HM
T M
ach
ine
To
ols
Ltd
31/0
3/2
014
1082.1
4-
-33.2
711
15.4
1
HM
T W
atc
he
s L
td31/0
3/2
015
48161.6
2-
-1254.7
949416.4
1
HM
T W
atc
he
s L
td31/0
3/2
014
46906.8
4-
-1254.7
948161.6
3
HM
T C
hin
ar W
atc
hes L
td*
31/0
3/2
015
8108.9
1-
19.0
0175.9
18265.8
2
HM
T C
hin
ar W
atc
hes L
td*
31/0
3/2
014
7937.0
0-
4.0
0175.9
18108.9
1
* C
onsid
ere
d to
be d
oubtful a
nd th
e a
mount o
f whole
Loan a
nd A
dvance is
pro
vid
ed a
s d
oubtful
Na
me
of
Re
late
d P
art
yA
s a
tO
pen
ing
Ad
van
ce
Ad
van
ce
Clo
sin
g
Ba
lan
ce
Giv
en
tak
en
Ba
lan
ce
b)
Ad
van
ces (D
r / (C
r)
SU
DM
O H
MT
Pro
cess
31/0
3/2
015
2.4
52.4
0
-
4.8
5
Engin
eers
(In
dia
) Ltd
31/0
3/2
014
4.3
42.4
54.3
42.4
5
HM
T M
ach
ine
To
ols
Ltd
31/0
3/2
015
575.6
3
-
174.1
6401.4
7
HM
T M
ach
ine
To
ols
Ltd
31/0
3/2
014
345.6
2230.0
1-
575.6
3
HM
T W
atc
he
s L
td31/0
3/2
015
2368.5
335.3
4-
2403.8
7
HM
T W
atc
he
s L
td31/0
3/2
014
2296.4
972.0
4-
2368.5
3
HM
T C
hin
ar W
atc
he
s L
td31/0
3/2
015
(0.0
9)
0.3
1-
0.2
2
HM
T C
hin
ar W
atc
he
s L
td31/0
3/2
014
0.0
9 -
0.1
8(0
.09)
HM
T B
earings L
td31/0
3/2
015
89.3
65.9
415.0
080.3
0
HM
T B
earings L
td31/0
3/2
014
(129.2
1)
250.0
031.4
389.3
6
HM
T (In
tern
atio
nal) L
td31/0
3/2
015
34.0
6-
51.1
4(1
7.0
8)
HM
T (In
tern
atio
nal) L
td31/0
3/2
014
16.8
717.1
9-
34.0
6
( ` in
la
kh
s )
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69
c)
The in
vestm
ents
in rela
ted p
art
ies i.
e. S
ubsid
iaries a
nd J
oin
t V
entu
re a
re d
eta
iled u
nder N
ote
No.1
1.
T
he C
om
pany h
as n
ot g
iven a
ny g
uara
nte
e/s
ecurity
to th
e rela
ted p
art
ies.
d)
Na
me
of
the
Tra
ns
ac
tin
g R
ela
ted
Pa
rty
MT
LH
WL
CW
LH
MT
(I)
BL
HT
OTA
L
Rev
enu
e fr
om
Op
erat
ion
s2
01
4-1
5
--
- -
--
20
13
-14
-
- -
58.3
9-
58.3
9
Oth
er In
com
e2
01
4-1
533.2
71
25
4.7
91
75
.41
7.9
5-
14
71
.42
20
13
-14
33.2
71
25
4.7
91
75
.41
2.2
5-
14
65
.72
Pu
rch
ases
20
14
-15
-
-
-11
.89
-11
.89
20
13
-14
-
- -
-
- -
Gen
eral
Exp
ense
s
(rec
ove
ry o
f exp
ense
s)2
01
4-1
5(2
49.7
4)
(36.5
2)
-(4
7.1
4)
(5.7
2)
(339.1
2)
20
13
-14
(138.0
8)
(22.2
5)
-(4
3.4
2)
(4.2
1)
(207.9
6)
Inte
rest
20
14
-15
-
-
-
43.0
043.0
0
20
13
-14
-
-
-
43.0
043.0
0
e)R
emu
ner
atio
n to
Key
Man
agem
ent P
erso
nn
el:
Nam
e o
f Rel
ated
Par
tyS
alar
yO
the
r A
llo
wa
nc
eT
OTA
L
1) A
nton
y C
hach
o2
01
4-1
52.3
10.7
13.0
2
1) S
.G.
Srid
har
20
13
-14
1.8
60.3
72.2
3
2) A
nton
y C
hach
o15.6
24.5
920.2
1
( ` in
la
kh
s )
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70
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
39 CONTINGENT LIABILITIES:
The Company is contingently liable for:
39.A Claims against the Company not acknowledged as debts
I . Tax related claims pending in appeal
i) Excise Duty 2.48 2.48
ii) Sales Tax 217.50 217.50
I I . Non receipt of related Forms against levy of
concessional Sales Tax 629.54 940.93
I I I . Employee related claims relating to Lockouts,
Back wages, Incentive & Annual bonus, etc., 33.06 10.04
pending adjudication, to the extent ascertainable
IV. Various cases relating to defective product,
accident causing injuries to third parties, claims
relating to supply of materials etc. 300.74 159.64
V Liability towards interest, penalty/damages as per 14B of 27.05 23.89
Employees Provident Fund and Misc. provision Act, 1952
39.B The Company had deposited 16.00 Lakhs before II Additional Chief Judge,
City Civil Court, Hyderabad against the claim made by M/s. Medvin Hospital
Hyderabad out of said claim the company has acknowledged only
` 2,69,433/- as debts 13.31 13.31
39.C Refund to Andhra Pradesh State Government based on the outcome of the
appeal preferred by the Government in EP No. 124/2006 in O. S. 794/92 6.47 6.47
39.D The GOI had released a Plan Assistance of 200 lakhs to the Company during March 2007 to meet the Capital
Expenditure of HMT Watches Ltd, the wholly owned Subsidiary, in the form of Equity (`100 lakhs) & Loan (`100
lakhs). In view of the non utilisation of the funds by the Subsidiary within the stipulated period, GOI had
instructed the Company during December 2009 for refund of the total Plan Assistance of 200 lakhs. Accordingly,
the Company has refunded the Loan amount of 100 lakhs to GOI during February 2010. However, with regard
to refund of Equity portion, since the Company has already issued 10,00,000 Equity Shares of `10/- each
(`100 lakhs) in favour of President of India during April 2007, as per the terms of GOI sanction, the same could
not be carried out, as it would amount to reduction in Share Capital requiring the approval of the Share Holders
and completion of other statutory formalities as per the Companies Act and applicable rules in this regard, and
the same has been communicated to GOI. Further instructions are awaited from GOI on the same.
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71
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
39.E Preference Share Capital
The Government of India while approving the Revival Plan of HMT Machine Tools Ltd (HMT-MTL), a Subsidiary
Company, during March 2007, had accorded sanction for cash infusion of ` 44300 lakhs in the form of 3.5%
Preference Share Capital which was routed through the Company for investment in the Preference Share
Capital in the Subsidiary, to be redeemed after 3 years i.e. 31.3.2010 out of sale of surplus immovable Properties
of HMT-MTL.
Since the title deeds in respect of the identified immovable properties are not mutated in the name of the HMT-
MTL, the sale of these properties have been approved by the Government as part of the Revival Plans of the
Company (HMT Ltd). The Preference Share Capital will be redeemed upon sale of immovable property.
40 Advances include
40.A Amounts recoverable from employees advances, bonus etc pending
adjudication / negotiations 0.12 0.12
40.B Adhoc payments to employees towards Wage/Salary, DA arrears, if any, 908.91 909.73
41 Balances under ‘Trade Receivables’ , ‘Loans & Advances’, ‘Trade Payables’ and ‘Other Current Liabilities’ are
subject to confirmation, although confirmation has been sought in most of the cases.
42 Value of Special Tools individually costing less than 750 written
off during the year. 55.47 58.62
43 Revenue expenditure on Research & Development charged to
Statement of profit & loss 285.36 230.96
44 Previous year’s figures have been reclassified wherever necessary to conform to this year’s classification.
45 EMPLOYEE BENEFITS:
The Gratuity has been provided by the Company under a Defined Benefit Plan to cover the eligible employees,
the liability being determined on actuarial valuation done by LIC using Projected Unit Credit Method. The Company
has taken a Policy under Group Gratuity Scheme with LIC and annual contributions are made to the extent
required, to the separate Trust constituted and administered by the Life Insurance Corporation of India under
which the coverage is limited to 50,000/- per eligible employee and the balance is being retained in the books
to meet any additional liability accruing thereon.
The provision for gratuity as on 31-03-2015 for the balance amount, based on the above assumptions for over
and above the amount covered under the LIC policy in respect of the Company is 6857.34 lakhs and additional
provision made during the year for full coverage (based on salary at year end) in excess of ` 50000/- per
employee based on actuarial valuation by LIC 1747.13 lakhs.
The provision of ` 989.50 lakhs towards Earned leave encashment and ` 368.45 Settlement allowance is
carried in the books as on 31.3.2015 to cover the eligible employees based on the actuarial valuation done by
qualified Actuary. However, an amount of 244.51 lakhs and ` 54.04 lakhs respectrively has been provided
during the year.
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72
NOTES FORMING PART OF BALANCE SHEET
NoteParticulars
As at As at
No 31-03-2015 31-03-2014
( ` in lakhs )
The actuarial valuation has been made based on the following assumptions:
Gratuity Earned Leave Encashment Settlement Allowance
1 Retirement Age 60 years 60 years 60 years
2 Future Salary escalation 7% p.a. 6%-8% p.a. 6%-8% p.a.
3 Rate of discount 8% p.a. 8% p.a. 8% p.a.
4 Attrition rate 1 to 3% depending on age 5% p.a. 5% p.a.
5 Mortality rate LIC (1994-96) Ultimate 60 (2006-08) 60 (2006-08)
Ultimate Mortality Table Ultimate Mortality Table
1 Reconciliation of changes in respect of obligations
Present value of obligation as at beginning of year 480.59 513.18 6861.73 - 754.57 - 318.01 -
Interest cost 38.45 41.05 550.16 - 60.04 - 25.43 -
Current Service Cost 0.54 1.25 211.18 - 184.27 - 43.26 -
Benefits Paid 2.00 115.00 2.00 - 8.26 - 0.37 -
Actuarial (gain)/loss on obligations (26.45) 40.11 (49.68) - (1.12) - (17.88) -
Present value of obligation as at end of year 491.13 480.59 7571.39 - 989.50 - 368.45 -
2 Reconciliation of changes in the fair value of plan assets
Fair value of plan assets at the beginning of year 671.20 619.30 671.20 - 0.00 - 0.00 -
Expected return on plan assets 60.07 54.90 60.07 - 0.00 - 0.00 -
Contributions of Employer 0.00 112.00 0.00 - 8.26 - 0.37 -
Benefits paid 2.00 115.00 2.00 - 8.26 - 0.37 -
Actuarial Gain / (Loss) on Plan assets - - - - - - - -
Fair value of plan assets at the end of year 729.27 671.20 729.27 - 0.00 - 0.00 -
Actual Return on Plan Assets - 0.00 - 0.00 -
3 Reconciliation of fair value of plan assets
Fair value of plan assets at beginning of year 671.20 619.30 671.20 - 0.00 - 0.00 -
Present Value of Obligations at the year end 60.07 54.90 60.07 - 989.50 - 368.45 -
Amount recognised in Balance Sheet 0.00 112.00 0.00 - 989.50 - 368.45 -
4 Acturial Gain/Loss recognized
Actuarial gain/(loss) for the year - Obligation 26.45 (40.11) 49.68 - 1.12 - 0.37 -
Actuarial gain/(loss) for the year - plan assets - - - - - - - -
Total (gain)/loss for the year (26.45) 40.11 (49.68) - (1.12) - (0.37) -
Actuarial gain/(loss) recognised in the year 26.45 (40.11) 49.68 - 0.00 - 0.00 -
5 Amounts recognised in the Balance Sheet and Statement of Profit & Loss
Present value of obligations as at the end of the year 491.13 480.59 7571.39 - 989.50 - 368.45 -
Fair Value of plan assets as at the end of the year 729.27 671.20 729.27 - 0.00 - 0.00 -
Actuarial (Gain)/ Loss on Obligation - (1.12) - (0.37) -
Actuarial (Gain)/ Loss on Plan Assets - 0.00 - 0.00 -
Net (Asset)/Liability recongnised in the Balance Sheet 6842.12 - 989.50 - 368.45
* The amounts relating to Financial Year 2013-14 were not reported during the previous year.
( ` in lakhs )
2014-15 2013-14 2014-15 2013-14* 2014-15 2013-14* 2014-15 2013-14*
Gratuity (Funded) Gratuity (unfunded)
Earned LeaveEncashment(Unfunded)
SettlementAllowance(Unfunded)
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73
Year ended Year ended
31.03.2015 31.03.2014
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) Before Tax and Extra-ordinary Items (9,656.66) 10,582.04
Adjustment for:
Depreciation & Amortisation 271.35 340.16
Exceptional Items - Interest Waiver - (27,500.23)
Profit on Sale of Fixed Assets (net) 11.99 (0.02)
Amortisation of Special Tools 95.69 102.96
Foreign Exchange (net) - -
Interest debited (Net) 127.24 (524.30)
Dividend received (7.20) (14.40)
Bad debts/advances, obsolete materials written off 346.90 236.78
Provision for slow/non moving inventories, Doubtful debts, Loans & (248.18) 597.79 8,594.27 (18,764.78)
Advances and Investments
Operating Profit Before Working Capital Changes (9,058.87) (8,182.74)
Adjustment for:
(Increase)/Decrease in Trade & Other Receivables 800.02 (902.40)
(Increase)/Decrease in Inventories 966.48 (1,067.20)
(Increase)/Decrease in Other Current Assets 256.11 118.00
Increase/(Decrease) in Trade payables & Other Current Liabilities 3,262.31 2,225.20
5,284.92 373.60
Cash Generated From Operations (3,773.95) (7,809.14)
Direct Taxes paid - -
Cash Flow Before Extra-ordinary Items (3,773.95) (7,809.14)
Extra-ordinary Items - -
NET CASH FROM OPERATING ACTIVITIES (3,773.95) (7,809.14)
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (7.53) (12.08)
Sale proceeds of Fixed Assets 12.00 0.02
Sale of Investments - -
Dividend Received 7.20 14.40
(Payment)/Receipt-Subsidiaries 217.70 (533.42)
Interest Received 117.13 159.93
NET CASH USED IN INVESTING ACTIVITIES 346.50 (371.15)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2015( ` in lakhs )
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74
Particulars
Year ended Year ended
31.03.2015 31.03.2014
(` in Lakhs)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2015
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Share Capital - 66,074.15
Proceeds from Long Term/Short Term Borrowings 1,946.00 5,256.00
Repayment of Long Term/Short Term Borrowings (128.09) (52,346.38)
Exchange Difference (net) - -
Interest Paid (965.54) (6,882.79)
NET CASH USED IN FINANCING ACTIVITIES 852.37 12,100.98
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (2,575.08) 3,920.69
CASH AND CASH EQUIVALENTS AS AT 1ST APRIL 4,373.51 452.82
(Opening Balance)
CASH AND CASH EQUIVALENTS AS AT 31ST MARCH 1,798.43 4,373.51
(Closing Balance)
(2,575.08) 3,920.69
Note: 1) The above statement has been prepared under the Indirect method as set out in notified AS 3 - Cash Flow Statement.
2) The Cash and Cash Equivalents has been considered as per Note No. 15.
For and on behalf of the Board As per our Report of even date attached
For M/s. DOKANIA S KUMAR & CO.
F.R.N. 322919E
Chartered Accountants
S. Girish Kumar P. Sivarami Reddy B. K. Subash CA. Sushil Kumar Dokania
Chairman & Managing Director Director (Operations) Company Secretary Partner
(Membership No.057020)Place: New DelhiDate : June 18, 2015
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75
CONSOLIDATED
FINANCIAL STATEMENTS
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76
To
The Members of
HMT Limited
Report on the Consolidated Financial Statements:
We have audited the accompanying Consolidated financial
statements of HMT Limited (hereinafter referred to as ‘the
Holding Company’), and its subsidiaries (the Holding
Company and its subsidiaries together referred to as ‘the
Group’), its Joint Venture Company, comprising of the
Consolidated Balance Sheet as at 31st March, 2015, the
Consolidated Statement of Profit and Loss and the
Consolidated Cash Flow Statement for the year then ended,
and a summary of the significant accounting policies and
other explanatory information (hereinafter referred to as ‘the
consolidated financial statements’).
Management’s Responsibility for the Consolidated
Financial Statements:
The Holding Company’s Board of Directors is responsible
for the preparation of these consolidated financial
statements in terms of requirements of the Companies Act,
2013 (hereinafter referred to as ‘the Act’) that give a true
and fair view of the consolidated financial position,
consolidated financial performance and consolidated cash
flows of the group including its Joint Venture Company in
accordance with the accounting principles generally
accepted in India, including the accounting standards
specified under section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014. The respective
Board of Directors of the companies included in the Group
are responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act for
safeguarding the assets of the Group and for preventing
and detecting frauds and other irregularities; the selection
and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent;
and the design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error, which have been used for the
purpose of preparation of the consolidated financial
statements by the Directors of the Holding Company, as
aforesaid.
INDEPENDENT AUDITORS’ REPORT
Auditors’ Responsibility:
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. While
conducting the audit, we have taken into account the
provisions of the Act, the accounting and auditing standards
and matters which are required to be included in the audit
report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards
on Auditing specified under Section 143(10) of the Act.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the
consolidated financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal
financial control relevant to the Holding Company’s
preparation of the consolidated financial statements that
give a true and fair view in order to design audit procedures
that are appropriate in the circumstances but not for the
purpose of expressing an opinion on whether the Holding
Company has an adequate internal financial controls
system over financial reporting in place and the operating
effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates
made by the Holding Company’s Board of Directors, as
well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence obtained by us and the
audit evidence obtained by the other auditors in terms of
their reports referred to in sub-paragraph (a) of the Other
Matters paragraph below, is sufficient and appropriate to
provide a basis for our qualified audit opinion on the
consolidated financial statements.
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77
Basis for Qualified Opinion:
HMT Limited
CHO:
1. No actuarial valuation has been obtained in respect of
contributions required for Provident Fund liability by
the Company as per the requirements of AS-15
“Employee Benefits”. The amount of contribution to
Provident Fund is 26.30 Lakhs during the year under
audit.
2. The amount of Gratuity Provision (Unfunded) to be
recognized in Balance Sheet as per actuary valuation
report is ` 6,842.12 Lakhs. Whereas as per Note
No. 5 & Note No. 9 of the Standalone Financial
Statements the aggregate provision amounts to
` 6,857.34 Lakhs.
Tractor Division, Pinjore:
1. No actuarial valuation has been obtained with respect
to the provisions made for Provident Fund and
Outstanding amount has been shown amounting to
` 2,174.38 Lakhs
HMT Watches Limited (As per Statutory Auditors’
Report):
1. Dis-agreement on accounting policies – inappropriate
disclosure
a) The accompanying financial statements have been
prepared assuming that the Company will continue
as a going concern. The accumulated losses of
the Company will continue as at the close of 31st
March, 2015 amounted to ` 251,209.86 lakhs
against which the paid up capital of the Company
is ` 649.01 lakhs and has totally eroded the net
worth of the company. The company has been
incurring continuous operating losses for the past
few years. The total liabilities of the company as
at the close of 31st Mach, 2015 is ` 257,961.59
lakhs against which the fixed and current assets
are only 7400.74 lakhs. The contingent liabilities
disclosed in the financial statements are 6514.14
lakhs and there are other liabilities, which have not
been quantified. The financial statements have been
prepared on the basis of going concern assumption
that raises a substantial doubt about the
Company’s ability to continue as a going concern.
The financial statements do not include any
adjustments that might result from the outcome of
this uncertainty.
b) Certain internal control deficiencies were observed
during the course of audit of financial statements.
The Management has not established adequate
internal controls to ensure that transactions were
properly classified, accounted, reviewed and
reconciled. The Units of the Company did not follow
the established internal controls, such as
performing account reconciliations, obtaining
periodical confirmation of balances, periodical
verification of Fixed Assets, payment vouchers duly
supported by sanctions and providing management
an oversight of the financial management
accounting processes.
c) The Company has not identified, measured,
quantified and disclosed the impairment of assets
and its impact on the current financial statements
in line with the Accounting Standard-28.
d) Depreciation on Leasehold land in the case of
Watch Marketing Division has been computed by
applying straight line method rates of depreciation
as applicable to building as per erstwhile the
Companies Act, 1956 instead of amortizing the
value of leasehold land over the period of lease.
This is contrary to Accounting Standard 06. The
impact of the same on the Net Loss of the Company
and also on carrying cost of tangible assets is not
ascertainable.
e) The details for fixed assets with written down value
of ` 1 lakh and above which have been retired
from active use and disclosed at lower of book or
net realizable value were not made available in
respect of Watch Factory, Ranibagh.
f) Valuation of inventories not being in accordance
with the Accounting Standard 02 –Valuation of
inventories due to:
• Recovery of overheads on the basis of planned
production and not on normal capacity
• Not conducting the physical verification of raw
materials during the financial year 2014-15 and raw
material consumption is not commensurate with
the production during the year compared to the
previous year in respect of Watch Factory,
Bangalore.
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• In Watch Factory, Tumkur, the work in progress is
valued at cost instead of on the basis of percentage
of completion basis taking into consideration the
NRV of finished goods.
• In Watch Factory, Tumkur, provision was made
towards obsolescence considering the accretion
to the Work-in-progress instead of accretion to the
Work-in-progress over a period of time and
technological changes. Work in Progress is valued
at Cost instead of lower of Cost and NRV.
• Individual details of slow / non moving goods and
obsolete inventories were not made available to us.
In Watch Marketing Division and Watch Factory,
Ranibagh no provision was made towards non –
moving/slow moving inventories which is contrary
to the accounting policy of the Company.
Accordingly, we are unable to comment on
adequacy of such provisions made in the accounts.
• No provision for additional duty redemption fine and
penalty of 150.00 Lacs was made in the accounts
relating to Watch Components valued at 343.30
Lakhs taken into custody by the Customs
Authorities in the earlier years in Watch Factory,
Ranibagh.
• The Watch Marketing Division has not obtained
confirmation of balances from the Customs
Authorities in respect of watch components taken
into custody by Customs Authorities and included
in Inventories valuing 67.12 Lakhs.
• Valuation of Finished Goods pending receipt of
physical verification certificates in respect of stocks
at show rooms/exhibition/on consignment.
• Closing stock of spares at showroom is reduced
by 51.76% on MRP value to arrive at cost. Basis
for the computation of percentage were not
available. Hence, we are unable to comment on
the accuracy of valuation of such stocks and impact
on the financial statements is not ascertainable.
In view of the above, we do not express an independent
opinion on the correctness of existence and valuation
of inventories. Net effect of the same on the financial
results is not ascertainable.
g) Company has not disclosed contingent liability, if
any, relating to sale of land to Canara Bank and
subsequent claim by third party vide Miscellaneous
Petition No. 62l/622, pending adjudication.
h) As required by Part II, Schedule III of the Companies
Act, 2013, the Statentent of Profit and Loss Account
does not disclose item of income or expenditure
which exceeds one percent of revenue from the
operations or 1 lakh whichever is higher.
i) Finance cost includes interest on delayed payment
of Statutory Dues, instead of disclosing the same
distinctly.
j) Short Term Loans and Advances – Advance
recoverable in cash or in kind includes a sum of
` 14.51 Lakhs being Suspense A/c OBS (Dr
Balance) relating to Watch Marketing Division.
Individual details of such debits are not
ascertainable. They are subject to reconciliation.
Net impact of the same on the financial result of
the unit is not ascertainable.
k) As stated in Note No. 19, no provision is made for
liabilities aggregating 4,305.62 Lakhs in respect
of employee related claims relating to lockouts,
back wages, incentives, annual bonus, etc. This
has resulted in understatement of net loss by
`4,305.62 lakhs and corresponding understatement
of current liabilities to that extent.
l) Except Watch Factory, Ranibagh and Watch
Factory, Bangalore, no provision for the liability
towards the interest payable under Micro, Small
and Medium Enterprises Development Act, 2006,
if any, is made in the accounts. The impact of non-
provision for such interest on the financial results
of the Company is not ascertainable. In the
absence of confirmation from vendors and non-
availability of adequate information with the Units,
provision made towards interest and the principal
amount disclosed as dues as on Balance Sheet
date, we are unable to comment on the adequacy
of the provision and the impact on the financial
statements.
m) In Watch Factory, Bangalore, no provision towards
warranty for the products sold was made in the
accounts. This is contrary to AS — 29.
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n) In pursuant to Distress Warrant dated 23 rd
December 2011 issued by Bangalore Mahanagara
Palike for recovery of ` 381.31 Lakhs of property
tax along with penalty for the period from
01.10.1995 to 2011-12, a total provision of 575.68
Lakhs has been made towards such taxes and
penalties as at the 31st March 2015. As the distress
warrant being in the nature of attachment of
movable property towards the property tax, the fact
regarding distress warrant has not been disclosed
in the financial statements.
o) One of the creditor of the company had obtained
Execution Decree dated 30.05.1998 passed in OS
No. 15652 of 2008 for `128 Lakhs. This fact
together with contingent liabilities, if any, has not
been disclosed in the financial statements of the
Company.
p) As required by Part I of Schedule III of the
Companies Act, 2013, the value of office equipment
has not been shown distinctly but is included in
the value of Furniture, Fixtures and Office
Appliances in the Fixed Asset Schedule.
q) In Watch Factory, Ranibagh, as disclosed in Note
No. 12.7 the unit is holding lease hold land of 33.32
acres. The Board in its meeting held on 30.06.2014
has decided to retain 10 acres of land and surrender
balance 23.32 acres to the Forest Authorities. This
fact has not been disclosed.
r) Other current liabilities of 2424.20 lakhs disclosed
in Note No. 10 includes claims suspense account,
statutory dues, EMD, Miscellaneous Recoveries,
etc. As required by Part I, Schedule III to the
Companies Act, 2013, the nature of payables has
not been disclosed.
2. Dis-agreement on accounting issues:
a) Other Current liabilities include a sum of 889.62
Lakhs relating to advances received against sale
of land including buildings. The Company has
executed an Agreement to Sell and the possession
of land (including Buildings) has been given to the
Purchaser. The transaction has not been
recognized as sale pending approval from the
concerned authorities for the execution of sale
deed. The value of land (including buildings) has
been included in the respective head under fixed
assets though there are no future economic benefits
flowing to the Company. The consequential impact
on the losses, carrying amount of the fixed assets,
depreciation and taxes are not ascertainable.
b) Fixed Assets have been transferred from the
Holding Company (HMT Limited) to the company
at the gross values, reserve for depreciation and
net values as on 01.04.2000 in accordance with
Scheme of Arrangement approved by the
Department of Company Affairs. Depreciation has
been charged from the accounting year 2000-2001
and onwards on the original cost of the assets on
straight line basis, keeping in view the estimated
life of the asset. Fixed Assets should have been
recorded at the original cost to Company instead
of at historical cost to HMT Limited. This has
resulted in over statement of gross block by 32.21
Crores. Excess depreciation charged on such
overstatement of Gross Block has not been
quantified. Effect of the same on overstatement of
losses and understatement of net block of assets
are not ascertainable.
c) Gross block of fixed assets in Watch Marketing
Division as on 01.04.2013 is ` 509.51 Lakhs as
against `322.24 Lakhs as per Fixed Asset
Register. The difference of 187.27 Lakhs has not
been reconciled. In the absence of reconciliation,
the impact on the financial statements is not
ascertainable.
d) No physical verification of fixed assets was carried
out during the year in respect of Watch Marketing
Division and Watch Factory, Bangalore. In the
absence of physical verification of fixed assets, we
are unable to comment on material discrepancies
if any, its treatment in the books of account and
impact on the financial results of’ the company
including carrying cost of fixed assets.
e) There are many unspecified/excess credits in
various bank accounts pending reconciliation/
identification of parties amounting to 17.73 Lakhs
carried as other current liabilities in Watch
Marketing Division and its consequential effect on
the net Loss for the year is not ascertainable. This
is continued without reconciliation / identification
for a long time.
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f) There is no system of obtaining periodical
confirmation of balances relating to trade
receivables, trade payables, loans and advances,
current liabilities and provisions and in many cases
the balances are subject to reconciliation. The
effect of the same on current assets and current
liabilities and on the net Loss for the year is not
ascertainable. Reconciliation has not been done
for many years. We are unable to obtain direct
balance confirmation from parties in the absence
of details of parties made available to us.
g) Balances with Banks in Current Account with
Scheduled Banks relating to most of the show
rooms relating to Watch Marketing Division are as
per books of account and are subject to
confirmation by the respective banks.
h) Other Bank balances include deposits with
scheduled banks furnished as margin money to
bank guarantee. Confirmation of balances of Fixed
Deposit held as Margin Money as at the close of
the year has not been obtained.
i) Other liabilities include a sum of ` 39.27 Lakhs
representing Suspense Account OBS (Cr) and
` 1.05 Lakhs representing Suspense Account Bills
(Cr) relating to Watch Marketing Division. Individual
details of such credits / debits are not ascertainable
and are subject to reconciliation. Net impact of the
same on the financial result of the Company is not
ascertainable. This is continued to be shown as
such over a long period of time.
j) Interest on Excise Duty of ` 40.11 Lakhs has
been adjusted against Excise Duty Recoverable –
CENVAT Account in Watch Factory, Ranibagh.
This is not in accordance with the provisions of
CENVAT Credit Rules. Impact of the same on the
financial statements of the Company is not
ascertainable.
k) Service tax liability under reverse charge
mechanism has neither been ascertained nor
provided for in the accounts. Impact of the same
on the Net Loss of the Company is not ascertainable.
l) In the absence of age wise classification of debtors
made available to us, we are unable to express
our opinion on adequacy of provisions towards
doubtful trade receivables made upto 31.03.2015
amounting to 4639.29 Lakhs.
m) The details for interest on delayed payment of
Provident Fund and other statutory dues were not
made available. The Company has neither
ascertained nor worked out the quantum of penal
interest, penalties and damages towards default
in remitting statutory dues. In the absence of such
details, we are unable to express our opinion on
adequacy of provision towards interest on delayed
payment and its impact on financial statements.
n) Interest on delayed settlement of gratuity to
employees beyond 30 days from the date of
retirement has not been provided for in the financial
statements, except in two units. Impact on financial
statements is not ascertainable.
o) No provision towards gratuity amounting to ` 28
Lakhs during training period has been made in the
financial statements as ordered by ALC on the
applications filed by 125 separated employees and
orders of Hon’be High Court of Karnataka to deposit
` 28 Lakhs, which is contrary to Accounting
Standard 29 — Provisions, Contingent Liabilities
and Contingent Assets, resulting in understatement
of loss and current liabilities and provisions to that
extent. Impact on financial statements is not
ascertainable.
p) Profit on sale of fixed assets accounted in the books
include a sum of `1.03 Lakhs relating to disposal
of furniture and other assets by auction in Watch
Marketing Division. No adjustment towards Gross
Block value of assets and depreciation has been
made in the absence of details. The impact of the
same on the carrying amount of fixed assets in
the financial statements and on the Net Loss is
not ascertainable.
q) In Watch Marketing Division, as per decision of
the Board of Directors, some show rooms have
been informed to be closed and the assets
transferred to Global Warehouse, Bangalore. The
assets sent by such show rooms have not been
segregated into fixed assets and stocks and
accounted in the books of Global Warehouse. No
physical verification of such assets were carried
out at the Global Warehouse. In the absence of
physical verification, we are unable to express our
opinion on the value of fixed assets and stock in
trade carried in the financial statements.
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r) In Watch Marketing Division, Retention deposit,
EMD and Security Deposits and other old
outstanding liabilities shown under Other Current
Liabilities continue to be carried forward and many
of the show rooms have been closed. Complete
party-wise details of such deposits are not available
and no steps have been taken to ascertain the
details and review/reconciliation of such deposits.
s) In Watch Marketing Division, the amount of Gratuity
debited to Profit and Loss Account is in excess of
` 56.51 Lakhs. This has resulted in overstatement
of loss for the year and overstatement of long term
provisions to that extent.
t) In Watch Factory, Ranibagh, Net Loss for the year
as per Statement of Profit and Loss Account include
a sum of ` 6.86 Lakhs relating to transition
adjustment on account depreciation on fixed assets
whose useful life expired as on 01.04.2014. Such
transitional adjustment should have been adjusted
against carried amount of Reserves and Surplus
as was done in other units. Transition adjustment
carried out to the Reserves and Surplus also
includes a sum of 6.86 Lakhs. This has resulted
in overstatement of Net Loss for the year and carried
amount of reserves and surplus to that extent.
u) KVAT input credit as per books of Watch Factory
Tumkur is ` 39.59 Lakhs whereas as per KVAT
Form 100 it is 9.58 Lakhs. No reconciliation has
been carried out. In the absence of reconciliation,
impact on financial statements is not quantifiable.
HMT Chinar Watches Limited (As per Statutory
Auditors’ Report):
1. The company decided to close its unit and grant
voluntary retirement to its employees. However, the
total liability on this account is around ` 12 crore
subject to final approval of the Government and to be
accounted thereafter.
2. Balance as at 31st March 2015 in respect of receivables
and payables are subject to confirmation and
reconciliation. Most of them are being carried from
year to year without any adjustment. Trade
Receivables of ` 147.97 lakhs are outstanding for
several years and their financial standing is doubtful
of recovery.
3. The Government of India has already decided to close
the company. However, till the time of closure, the
company will get continuous support from government.
The financial statements have been prepared on going
concern assumption basis and therefore no
adjustments have been considered relating to assets
and liabilities. Also no provision for possibility of claims
and losses which the company may face in future
due to closure. Implementation of recommendations
of Committee of Secretaries made in 2009 is pending
for final implementation to stop further losses.
Qualified Opinion:
In our opinion and to the best of our information and
according to the explanations given to us and based on the
consideration of reports of other auditors on separate
financial statements, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph
above, and except for the following reports made by their
respective Statutory Auditors,:
HMT International Ltd (As per Statutory Auditors’
Report):
Provident Fund is provided for, under a defined benefit
scheme. The Contributions are made up-to-date to the Trust
administered by the Company. However, the Company has
not obtained actuarial valuation, as per Accounting Standard
15 (Revised) and hence, consequential effects on accounts
could not be reported.
HMT Machine Tools Ltd (As per Statutory Auditors’
Report):
The Company has not determined by actuarial valuation
liability for Provident Fund dues as at 31st March, 2015.
Consequent effect of the same on the financial statements
for the year is not ascertainable. As per AS 15, where in
terms of any plan the enterprise’s obligation is to provide
the agreed benefits to current and former employees and
the actuarial risk (that benefits will cost more than expected)
and investment risk fall, in substance, on the enterprise,
the plan would be a defined benefit plan. Accordingly,
provident funds set up employer which require interest
shortfall to be met by the employer would be in effect defined
benefit plan in accordance with the requirements of
paragraph 26(b) of AS 15. Hence this is not in compliance
with the Accounting Standard 15 “Employee Benefits”
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The aforesaid consolidated financial statements give the
information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the consolidated
state of affairs of the Group, as at 31st March, 2015, and
their consolidated loss and their consolidated cash flows
for the year ended on that date.
Consolidated Financial Statements of HMT Limited:
The previous year’s figures of consolidated financial
statement of HMT Limited were not included with the figures
of Sudmo-HMT Process Engineers (India) Limited.
Therefore, we are unable to comment on comparison of
current year’s data with previous year’s data.
Emphasis of Matter:
HMT Watches Limited (As per Statutory Auditors’
Report):
i) We draw attention to “Basis of preparation of financial
statements” disclosed in significant accounting
policies to the financial statements which states that
the financial statements are prepared as of a going
concern inspite of substantial operational losses being
incurred and company’s operations are negligible
compared to the installed capacity of working.
ii) Note No. 12.2 – regarding inclusion of immovable
properties in Gross Block of the fixed assets, vested
under the Scheme of Arrangement approved by
Government of India and non-carrying of the mutation
of title deeds in the revenue records to that effect.
Hence, the title to the immovable properties could not
be ensured.
iii) Note No. 12.4 – regarding possession of gifted land
located at Bangalore admeasuring 89.74 acres of
which 7.0 acres of land encroached upon and the
matter taken up with the Government of Karnataka to
shift the un-authorized occupants. Though the
Company is in possession of lands at various units, it
has not obtained up-to date encumbrance certificates
from the concerned authorities to ascertain the extent
of encroachment/title verification.
iv) Note No. 12.5 – regarding non identification of
equivalent value of land sold and transferred during
2003-04 based on a MOU entered into between HMT
Ltd and the Company. Certain lands were sold and
the profit on sale of such lands amounting to 1,421
Lakhs were accounted in books of account of HMT
Limited Holding Company and equivalent value of the
land has not yet been identified and transferred to the
company.
v) Note No. 19.0 disclosing Contingent Liabilities and
Commitments to the extent not provided for in the
accounts aggregating 6,514.46 Lakhs. The Company
has neither ascertained nor provided for further liabilities
if any, towards interest, penal interest and / or
damages in respect of these contingent liabilities
vi) Note No. 19.1, 19.2, 19.3 and 19.4 – regarding
pendency of sales tax assessments, suits filed by
employees and non ascertainment of liabilities on sale
of land. Respectively, not provided for in the accounts
vii) Note No. 38.0 regarding non refund of 100 Lakhs to
GOI out of 200 Lakhs – Plan Assistance received
during March 2007 for meeting capital expenditure and
accounting of FD in favour of Holding Company.
viii) Note No. 41 (b) regarding inclusion of 991.03 Lakhs
being the amount paid by way of adhoc to employees
towards wage / salary / DA / revision arrears if any,
pending adjustment for which necessary provision has
been made in the accounts to the extent of 1868.24
Lakhs. No adjustment towards the corresponding
advance account has been made during the year in
respect of settlements made during the year. The
Company has not reviewed the settlements made in
the past and taken action to adjust the advances.
ix) Note No. 47 regarding disclosure as per Accounting
Standard 15 (Revised). The detailed workings were
not made available and we have relied on the intimation
received from the Holding Company. Further, no
reconciliation of opening balance and closing balance
of the present value of the defined benefit obligations
showing separately the effect attributable to current
service cost, interest cost, contribution to be made
has not been ascertained from the holding company
and disclosed in the financial statements as required
by Accounting Standard 15 on ‘Employee Benefits’.
HMT Bearings Limited (As per Statutory Auditors’ Report):
We draw attention to the following matters presented
in the financial statements:
1. Note B 1 of Notes forming Financial Statements
wherein it is stated that these statements were
prepared based on going concern basis.
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The Company was declared a Sick Company under
Section 3(1)(o) of Sick (Special Provisions) Act, 1985
vide order no. 501/2009 dt 23/04/2009. Except
submission of business plan/draft rehabilitation
scheme to operating agency, there is no progress at
all even during the current year.
It is learnt that Cabinet Committee on Economic
Affairs has proposed for closure of the company.
However, no final decision has yet been taken.
As such, as stated above, the financial statements
are prepared as of a going concern.
2. Some of the balances under Trade Payables, Short
Term Liabilities, Other Current Liabilities, Trade
Receivables and Loans and Advances are subject to
confirmations.
3. HMT Tractors Division, Pinjore:
It was observed during our audit that there is inordinate
delay in making payments by Tractors Division –
Pinjore against supplies made by BLH. Details of
interest belated payments are as follows:
Year Amount ( ` in lakhs)
2010-11 14.57
2011-12 27.10
2012-13 39.34
2013-14 15.94
2014-15 24.87
In the absence of acceptance of these amounts by the
customer, the above figures were not accounted in the
books.
HMT Machine Tools Limited (As per Statutory Auditors’
Report):
1. Non – confirmation of trade payables, receivables,
Advances, and margin money deposit the
consequential effect on the financial statements is not
ascertainable.
2. No provision is made for the liability if any, towards
the interest payable under Micro, Small and Medium
Enterprise Development Act 2006 to the extent of non-
confirmation of balances by the vendors as on 31st
March 2015. The impact on non provision of such
interest on the financial result cannot be quantified
due to unavailability of required information.
Our opinion is not qualified in respect of these matters.
HMT Chinar Watches Limited (As per Statutory
Auditors’ Report):
Without qualifying their report, they have drawn attention
on the following matters:
a) The Para nos. 1 and 8 of Note B-21 to the financial
statements regarding net worth of Company- Now the
company is fully dependent on the Government
budgetary support for meeting its recurring
expenditures. Due to losses in the current year and in
the past, net worth of the Company has been fully
eroded. The Company’s management is in the process
to shut operations through sale of its assets through
auction and grant voluntary retirement scheme to its
employees. The company has accumulated deficits
and the net worth of the Company has been totally
eroded. The negative net worth is 58,220 Lacs as at
March 31, 2015. However, as per information and
explanations given to us the company will get
continued support from the Government of India, hence
financial statements have been prepared on Going
Concern Assumption basis. Consequently, no
adjustments have been made in accounts relating to
the recoverability of recorded assets amounts and in
respect of recorded liabilities and contingent liabilities
that might devolve on the Company.
b) Para No. 9 of Notes B21 to the financial statements
regarding impairment of assets, the Company has
taken a certificate from Technical Expert Committee
of the Company for net realizable value of fixed assets
and according to the certificate the net realizable value
is more than the carrying value of fixed assets as at
March 31, 2015, hence no adjustments have been
made in the books of accounts of the Company in
respect of impairment of fixed assets.
c) Para 10 of Notes B 21 to the financial statements
regarding VRS of employees approved by Department
of Heavy Industries, basis and quantum of
compensation is to be finalized by the government to
reduce further accumulation.
Other Matters:
1. We did not audit the financial statements / financial
information of the subsidiaries whose financial
statements / financial information reflect total assets
of ` 50,261.87 Lakhs as at 31st March, 2015, total
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revenues of ` 25,915.91 Lakhs and net cash flows
amounting to 1,692.16 Lakhs for the year ended on
that date, as considered in the consolidated financial
statements. We did not audit the financial statement/
financial information of joint venture company whose
financial statements reflect total assets of ` 44.77
Lakhs and total revenue of `3.81 Lakhs for the year
ended on that date, as considered in the consolidated
financial statements. The consolidated financial
statements also include the Group’s share of net loss
of ` 55,700.01 Lakhs for the year ended 31st March,
2015, as considered in the consolidated financial
statements, in respect of its joint venture company,
whose financial statements / financial information have
not been audited by us. These financial statements /
financial information of the subsidiaries and joint
venture entity are audited by other auditors whose
reports have been furnished to us by the Management
and our opinion on the consolidated financial
statements, in so far as it relates to the amounts and
disclosures included in respect of the subsidiaries and
joint venture company, and our report in terms of sub-
sections (3) and (11) of Section 143 of the Act, in so
far as it relates to the aforesaid subsidiaries and Joint
Venture company, is based solely on the reports of
the other auditors.
2. In our Independent Auditors’ Report of Holding
Company, we have reported
a. We did not audit the financial statements of certain
branches/units. These have been audited by other
Branch Auditors whose reports have been furnished
to us and our opinion is solely based on the reports of
Other Branch Auditors.
b. The financial statements of Lamp Division have been
merged with CHO Accounts and our report in so far as
it relates to the amounts included in respect of this
Division is based solely on Closing Balances of Last
Year’s Financial Statement of CHO Accounts.
c. The Physical share certificates for 26,08,99,037 Equity
Shares of M/s. HMT Machine Tools Ltd having value
of ` 26,089.90 Lakhs and 4,43,00,000 Preference
Shares of M/s. HMT Machine Tools Ltd having value
of ` 44,300.00 Lakhs are not in the possession of
the Company.
d. Payments to third parties are being made relating to
SUDMO-HMT Engineering (India) Ltd, Joint Venture
Company, are paid by the Company against which it
receives the reimbursements from them.
e. The Branch Auditors of Tractor Division, Pinjore have
Reported the following other matters:
a) Balance in Current Maturities of GOI Loans – Statutory
Dues and Working Capital and Bridge Loan as given
in Note – 9 of the division’s Balance Sheet amounting
` 2148.64 Lakhs has been given and we have relied
on the basis of the Certificate received from the
Management.
b) During the year 2014-15, the Management has
declared doubtful debts amounting 4410.10 Lakhs
which is very high in percentage and full provision has
been made in the Profit & Loss Account and
accordingly, provision has been made of interest
receivable on debts amounting 4756.73 Lakhs and
we have relied upon the certificate obtained from the
Management.
c) During the year 2014-15, the provision for obsolensce
has been shown by the Company amounting 438.29
Lakhs and we have relied upon the Certificate received
from the Management of the Company.
Our opinion on the consolidated financial statements,
and our report on Other Legal and Regulatory
Requirements below, is not modified in respect of the
above matters with respect to our reliance on the work
done and the reports of the other auditors and the
financial statements / financial information certified by
the Management.
3. The Statutory Auditors of HMT Watches Ltd have
reported:
i) The accounting of the following is as per Holding
company’s (HMT Limited) directions which are not
verified by us, in the absence of detailed workings
made available:
o Leave encashment provisions
o Gratuity provisions
o Settlement allowance
o Interest on loan from Holding company
o Loan from Government of India and HMT
Limited
o Interest subsidy on loan from Holding
company.
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ii) Company has not constituted an Audit Committee
as required under the provisions of Section 177 of
the Companies Act, 2013. The Internal Audit Reports
are not reviewed by the Management periodically
and corrective action taken to report compliance
to the Board.
iii) The company does not have a qualified Company
Secretary as required under the provisions of
Section 203 of the Companies Act, 2013
4. The Statutory Auditors of HMT Machine Tools Ltd
have reported:
We did not audit the financial statements of Six
Branches included in the Financial Statements of the
Company for the year ended on that date, as
considered in the Financial Statements. The financial
statements of these branches have been audited by
the branch auditors whose reports have been furnished
to us, and our opinion in so far as it relates to the
amounts and disclosures included in respect of these
branches, is based solely on the report of such branch
auditors.
Our opinion is not qualified in respect of this matter.
5. The Statutory Auditors of HMT Chinar Watches
Ltd have reported:
The financial statements of the Company as at March
31, 2014 and for the year then ended were audited by
another firm of Chartered Accountants M/s S. K.
Patodia & S who vide their report dated July 19, 2014
expressed an opinion on those Financial Statements.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor’s Report) Order,
2015 (‘the Order’), issued by the Central Government
of India in terms of sub-section (11) of Section 143 of
the Act, based on the comments in the auditors’
reports of the Holding company, subsidiary
companies, incorporated in India, we give in the
Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent
applicable. In the opinion of the auditors of joint venture
Company, the reporting requirements under the order
are not applicable and accordingly they have not
reported on the matters specified in paragraphs 3 and
4 of the Order.
2. As required by Section 143(3) of the Act, we report,
to the extent applicable, that:
a) We have sought and, except for the possible effect
of the matter described in sub-paragraph (b) of the
Basis for Qualified Opinion above, obtained all the
information and explanations which to the best of
our knowledge and belief were necessary for the
purposes of our audit of the aforesaid consolidated
financial statements.
b) In our opinion, except for the effect of the matters
described in the Basis for Qualified Opinion
paragraph above, proper books of account as
required by law relating to preparation of the
aforesaid consolidated financial statements have
been kept so far as it appears from our examination
of those books and the reports of the other auditors.
c) Except for the matter described in Basis for
Qualified Opinion paragraph above, the reports on
the accounts of the branch offices of the Holding
Company, and its subsidiaries, incorporated in
India, audited under Section 143 (8) of the Act by
branch auditors have been sent to us / the other
auditors, as applicable, and have been properly
dealt with in preparing this report.
d) The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss, and the Consolidated
Cash Flow Statement dealt with by this Report are
in agreement with the relevant books of account
maintained for the purpose of preparation of the
consolidated financial statements.
e) In our opinion, except for the effect of the matters
described in the Basis for Qualified Opinion
paragraph above, the aforesaid consolidated
financial statements comply with the Accounting
Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts)
Rules, 2014.
f) The matters described in the Basis for Qualified
Opinion paragraph above, in our opinion, may have
an adverse effect on the functioning of the Group.
g) On the basis of the written representations received
from the directors of the Holding Company as on
31st March, 2015 taken on record by the Board of
Directors of the Holding Company and the reports
of the statutory auditors of its subsidiaries – HMT
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Bearings Ltd, HMT Chinar Watches Ltd, Joint
Venture Company – Sudmo-HMT Process
Engineers (India) Limited, incorporated in India,
none of the directors of the said companies, its
company incorporated in India is disqualified as
on 31st March, 2015 from being appointed as a
director in terms of Section 164 (2) of the Act.
On the basis of reports of its Subsidiary
Companies –
HMT Watches Ltd: Based on the Notification No.
GSR829(E) dated 21.10.2003 issued by the
Department of Company Affairs, Government of
India, the requirements under sub-section (2) of
Section 164 of the Companies Act, 2013 does not
apply to the Company, being a Government
Company.
HMT Machine Tools: Being a government Company
provisions of section 164(2) of the Companies Act,
2013 is not applicable as per notification dated 5th
June, 2015 issued by Department of Company
Affairs, Government of India
HMT International Ltd: Being a government
Company, provisions of section 164(2) of the Act,
is not applicable, regarding appointment of Directors
h) The qualification relating to the maintenance of
accounts and other matters connected therewith
are as stated in the Basis for Qualified Opinion
paragraph above.
i) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditor’s) Rules, 2014,
in our opinion and to the best of our information
and according to the explanations given to us:
i. Except for the possible effects of the
matters described in the Basis of Qualified
Opinion paragraph and the Auditors’
Report of HMT Watches Ltd, the
consolidated financial statements disclose
the impact of pending litigations on the
consolidated financial position of the Group
- Refer Note 34 to the consolidated
financial statements. There were no
pending litigations against the Joint
Venture Company as per the report of their
respective auditor.
The amount pertaining to tax related claims
pending in appeal under the head “Others”
for the period ended as on 31st March 2014
has been changed in the audited financial
statements of HMT Watches Limited from
` 0.40 Lakhs to `1,077.26 Lakhs. In the
consolidated report, we have taken only
0.40 as it was reflected in the previous
year’s report of HMT Watches Ltd.
ii. Except for the possible effects of the
matters described in the Basis of Qualified
Opinion paragraph above, the Group, its
Joint Venture Company did not have any
material foreseeable losses on long term
contracts. There are no derivative contracts
entered into by the Group and its Joint
Venture Company.
iii. There were no amounts which were
required to be transferred to the Investor
Education and Protection Fund by the
Holding Company, and its subsidiary
companies, Joint Venture Company
incorporated in India.
For DOKANIA S.KUMAR & CO.
Firm Registration Number. 322919E
Chartered Accountants
(CA. Sushil Kumar Dokania)
Partner
Membership No.057020
Place: Bangalore
Date: 10-08-2015
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Annexure to the Independent Auditors’Report
As stated in Para 1of the ‘Report on Other Legal and
Regulatory Requirements’ in our Auditors’ report of
even date, the following statement is based on the
comments in the Auditors’ reports on the standalone
financial statements of the Holding Company and
subsidiary companies incorporated in India.
I.a) The Holding company and its subsidiary companies
have maintained proper records showing full
particulars, including quantitative details and situations
of Fixed Assets except in case of HMT Watched
Limited.
b) The Holding Company and its subsidiary companies
incorporated in India have a regular programme of
physical verification of its fixed assets by which all
fixed assets are verified over a period of three years.
In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Group
and the nature of its assets. In accordance with this
programme, the fixed assets have been physically
verified by the management except in case of HMT
Watches Limited and Marketing Divisions of HMT
Machine Tools Ltd located at Bangalore and
Hyderabad Units and no material discrepancies have
been noticed on such verification.
II.a) The inventory, except in case of one of the Divisions
of HMT Watches Ltd and Hyderabad and Praga Units
of HMT Machine Tools Ltd, has been physically verified
by the respective management of the Holding
Company and its subsidiary companies incorporated
in India during the year. In our opinion, the frequency
of such verification is reasonable. In respect of
inventory lying with third parties, neither physical
verification was conducted nor have written
confirmations been obtained.
b) The procedures for the physical verification of
inventories followed by the management as referred
to above are reasonable and adequate in relation to
the size of the respective company and the nature of
its business except in case of HMT Watches Ltd.
c) The Holding Company and its subsidiary companies
incorporated in India are maintaining proper records
of inventory except in case of one of the Divisions of
HMT Watches Ltd, wherein proper records for stock
in trade (Watched and Spares) were not maintained.
The discrepancies noticed on verification between the
physical stocks and the book records were not
material. In case of HMT Watches Ltd, no physical
verification certificates in respect of stocks at show
room/exhibition/on consignment are made available
to their auditors and hence, they were unable to
comment on Material discrepancies if any in respect
of such stocks and its treatment in their books of
accounts. In case of HMT Bearings Ltd, their Statutory
Auditors observed that the material issue price as
captured by the inventory package is not inclusive of
CST component and suitable rectification is yet to be
made in the software.
III.a) As informed to us, the Holding company has granted
loans to the bodies corporate, but hasnot maintained
a register U/s 189 of the Companies Act, 2013.The
subsidiary companies incorporated in India have not
granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register
maintained by it under Section 189 of the Act.
b) In the case of granting of loans to body corporates,
the borrowers have been regular in the payment of
interest. The terms of agreements do not stipulate
any repayment schedule and the loans are repayable
on demand. Accordingly, Sub-Clause (b) of the Clause
(iii) of the Paragraph 3 of the Order is not applicable.
c) According to the information given to us, there are no
overdue amounts more than Rupees One Lakh in
respect of the loans granted to the bodies corporate
by the Holding Company.
IV. In their opinion and according to the information and
explanations obtained by the statutory auditors of the
Holding Company and its subsidiary companies
incorporated in India, these companies have an
adequate internal control system commensurate with
the respective size of each company and the nature
of its business with regard to purchase of inventories
and fixed assets and sale of goods and services except
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that for HMT Watches Ltd with regards to purchase of
inventory. There is no continuing failure to correct major
weaknesses in internal control system in any of these
companies except in case of HMT Watches Ltd. As
reported by the Statutory Auditors of HMT Watches
Ltd, in regard to sale of watches and its spares and
services, the internal control system needs to be
further strengthened in Global Warehouse. In their
opinion the internal control procedures of HMT
Watches Ltd, needs to be further strengthened in the
areas of reconciliation and obtaining confirmation of
balances in respect of bank balances (relating to
Watch Marketing Division), trade receivables, trade
payables and advance received against sales. There
is no audit committee constituted during the year.
V. The Holding Company and its subsidiary companies
incorporated in India have not accepted any deposits
in accordance with the provisions of Sections 73 to
76 of the Act and the rules framed there under.
VI. The branch auditors of the Tractor Division and Food
Processing Units of Holding Company, Statutory
Auditors of HMT Bearings Ltd and HMT Machine Tools
Ltd have broadly reviewed the books of account
maintained by each company pursuant to the rules
prescribed by the Central Government for maintenance
of cost records under 148(1) of the Act wherever
applicable and are of the opinion that prima facie, the
prescribed accounts and records have been made and
maintained. However, the statutory auditors have not
made a detailed examination of the records. For Other
subsidiary companies incorporated in India, the Central
Government has not prescribed the maintenance of
cost records under 148(1) of the Companies Act, 2013,
for the products and services of the Company.
VII. a) According to the information and explanations given
to and on the basis of the examination of the records
of the HMT International Ltd by their respective
statutory auditors, amounts deducted/accrued in the
books of account in respect of undisputed statutory
dues including Provident Fund, Employees’ State
Insurance, Income tax, Sales tax, Wealth tax, Service
tax, Customs duty, Excise duty, Value added tax,
Cess, Professional tax and other material statutory
dues, as applicable, have been generally regularly
deposited during the year by each of these companies
with the appropriate authorities. On the basis of
examination of records of HMT Watches Ltd, HMT
Machine Tools Ltd by their respective Statutory
Auditors, the companies have not been regular in
depositing undisputed statutory dues including
Provident Fund, Employees’ State Insurance, Income
tax, Sales tax, Wealth tax, Service tax, Customs duty,
Excise duty, Value added tax, Cess, Professional tax
and other statutory dues with the appropriate
authorities. According to the information and
explanations given to and on the basis of the
examination of the records of the HMT Bearings Ltd
by their respective statutory auditors, except for slight
delays in deposit of ESI, Provident Fund dues, Taxes
deducted at Source, Service Tax, the Company has
been generally regular in depositing undisputed
statutory dues including Investor Education and
Protection Fund, Sales Tax, Custom Duty, Excise
Duty, Cess and any other material statutory dues
applicable to it. According to the information and
explanations given to and on the basis of the
examination of the records of the HMT Chinar Watches
Ltd, the Company is not regular in depositing the
undisputed statutory dues in respect of Provident Fund,
Income-tax though there is no delay in depositing
Sales-tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Value Added Tax or any other material
statutory dues.
According to the information and explanations given
to the statutory auditors of HMT Bearings Ltd and HMT
International Limited, no undisputed dues in respect
of Provident Fund, Employees’ State Insurance,
Income tax, Sales tax, Wealth tax, Service tax,
Customs duty, Excise duty, Value added tax, Cess,
Professional tax and other material statutory dues
were in arrears as at March 31, 2015 for a period of
more than six months from the date they became
payable.
According to the information and explanations given
to the statutory auditors of the Holding Company, its
subsidiary companies incorporated in India except
those mentioned above, following are the undisputed
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dues in respect of Provident Fund, Employees’ State
Insurance, Income tax, Sales tax, Wealth tax, Service
tax, Customs duty, Excise duty, Value added tax,
Cess, Professional tax and other material statutory
Sr. No. Nature of Statute Nature of Dues Amount (` ` ` ` ` )Period to which
amount related
HMT Limited-Corporate Head Office:
1. Income Tax* TDS Defaults 349613.95 2014 – 15
2. Income Tax* TDS Defaults 1882503.25 2013- 14
3. Income Tax* TDS Defaults 2059936.74 2012-13
4. Income Tax* TDS Defaults 180257.95 2011-12
5. Income Tax* TDS Defaults 5182992.87 Prior Years
6. Greater Hyderabad Municipal Property Tax 15218224.00 Previous Years
Corporation 7815398.00 Arrear Penalty
4776018.00 Current Tax
TOTAL 37464944.76
* Income Tax Website
dues that were in arrears as at March 31, 2015 for a
period of more than six months from the date they
became payable.
Sr. No. Nature of Statute Nature of Dues Amount (` ` ` ` ` )Period to which
amount related
Tractor Division, Pinjore:
1. Pinjore Sales Tax Interest on Demand 21773033.00 2001-02 to
2005-06
2. Sales Tax Sales/ VAT Tax 2001521.00 November 2013-
September 2014
3. CPF Provident Fund 49849972.00 Nov - 2013
Sept 2014
4. EPF Provident Fund 52246226.00 Nov - 2013
Sept 2014
5. EPS Provident Fund 3718381.00 Nov - 2013
Sept 2014
6. VPF Provident Fund 28928500.00 Nov -2013
Sept- 2014
7. PF Loan and Interest Provident Fund 53935211.00 Nov-2013
Sept-2014
8. Professional Tax Professional Tax 10200.00 Nov - 2013
Sept - 2014
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HMT Watches Limited (As per their Statutory Auditors’ Report): WMD Division:
Sr.Nature of Statute Nature of Dues Amount (` ` ` ` ` )
Period to which Date of
No. amount related Payment
1. Karnataka Sales Sales tax dues and 9879325.05 Not available Not paid
Tax Act and CST interest
2. The Jammu Kashmir Sales tax dues 6984 Balance as on Not paid
General Sales Tax 1.4.2011
Act, 1962
3. The Punjab Sales Sales tax dues – 533674 1983-84 Not paid
Tax Act Chandigarh Showroom
4. The Madhya Pradesh Sales tax dues- Bhopal 1228460 Not available Not paid
General Sales Showroom
Tax Act, 1958
5. The Assam General Sales tax dues- 254177 2002-03 Not paid
Sales Tax Act, 1993 Gawhati Showroom 2003-04
6. Provident Fund Employees 7099147 2014-15 Not paid
Contribution to PF
7. Provident Fund Employers Contribution 2271855 2014-15 Not paid
to PF
8. Sales Tax Sales Tax 8334695.40 Not available Not paid
9. Income – TDS Income Tax – TDS- V 495139 Not available Not paid
Nagraj- Sri Mookambika
Travels
Watch Factory, Bangalore:
1. Income Tax Act, 1961 TDS 7750 Not available Not paid
2. Finance Act, 1994 Service Tax 181925 Not available Not paid
3. Central Excise Duty Excise duty interest 4418535 Not available Not paid
4. Provident Fund PF – Employers 1192327 Not available Not paid
Watch Factory, Tumkur:
1. Gratuity Gratuity 2368.49 Not available Not paid
Watch Factory, Ranibagh
1. Provident Fund PF 65081672 Outstanding for
the period Apr 14 Not paid
to Mar 15
2. Pension Fund Pension Fund 5985892 Outstanding for
the period Apr 14 Not paid
to Mar 15
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HMT Machine Tools Ltd(As per their Statutory Auditors’ Report):
Sr.Nature of Dues
Amount Period to which Date of
No (` in Lakhs) amount related Payment
1. Provident Fund, VPF and SPF 1645.91 Not available Not paid
2. Value Added Tax & CST 58.98
3. Pension Contribution 50.52 Not available Not paid
4. Income Tax (TDS) 17.36 Not available Not paid
5. Gratuity Settlement 461.83 Not available Not paid
6. Professional tax 210.84 Not available Not paid
7. Employee State Insurance 2.53 Not available Not paid
8. Property Tax 210.84 Not available Not paid
HMT Chinar Watches Ltd. (As per their Statutory Auditors’ Report):
Sr.Nature of Dues
Amount Period to which Date of
No (` in Lakhs) amount related Payment
1. Provident Fund 12.72 Not available Not paid
2. TDS on Holding Company Not available Not paid
b) According to the information and explanations given to the statutory auditors of HMT International Ltd, HMT
Bearings Ltd and HMT Chinar Watches Ltd, there are no dues of Income tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty and Excise, Employees’ State Insurance and Value Added Tax or Cess which have not been
deposited on account of any dispute. According to the information and explanations given to the statutory auditors
of the holding company, its subsidiary companies incorporated in India such dues of Income tax, Wealth tax,
Sales Tax, Value added tax, Service tax, Customs duty, Excise duty and Cess as have not been deposited with
the appropriate authorities on account of any dispute are as follows:
Sr.Nature of Authority
Amount Period
No (` ` ` ` ` ) in lakhs
HMT Limited - Food Processing Unit
1. Appeal before Joint Commissioner (Appeal), 2.96 1989-90
2. Aurangabad 39.05 1999-00
3. 25.71 2000-01
4. 14.78 2001-02
5. 13.48 2003-04
6. 9.35 2004-05
TOTAL 105.33
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Sr.Nature of the Statue Nature of Dues
Amount
No (` ` ` ` ` ) in lakhs
HMT Watches Limited
(As per their Statutory Auditors’ Report):
1. Sales Tax 189.33
2. Customs Act, 1962 Custom Duty, Redemption fine and Penalty 212.29
3. Central Excise Act, 1944 Goods seized 169.33
4. Others 1077.26
5. Employees Provident Fund and Interest under sec. 7Q of PF Act (Penal Interest
Misc. Provisions Act, 1952 for damages under Sec. 14F of the PF Act) 4305.62
6. Arbitration Arbitration cases 560.63
Sr.Nature of Authority Nature of Dues
Amount (` ` ` ` ` ) Forum where the Unit
No. in Lakhs dispute is pending
HMT Machine Tools Limited
(As per their Statutory Auditors’ Report):
1. Central Excise Act, Cenvat Credit 221.17 CESTAT Bangalore
1944, Cenvat Rules Complex
Division
2. Central Excise Reversal of Cenvat Credit 6.42Bangalore
JT. COMM.CE(APPELS) Complex
Division
3. Central Excise Reversal of Cenvat Credit 4.73 JT. COMM.CE(APPELS)Bangalore
Complex
Division
4. Central Excise Reversal of Cenvat Credit 91.89 JT. COMM.CE(APPELS)Bangalore
Complex
Division
5. BBMP Property Tax 987.72Hon’ble Karnataka Bangalore
High Court Complex
Division
6. Central ExciseModvat Credit 1.60 CESTAT
Hyderabad
Act, 1944 Unit
7. Central ExciseModvat Credit 39.36
Availment of Excise duty Hyderabad
Act, 1944 exemption under 10/97 Unit
8. The Employees stateESI dues Employees 1.16
ESIC Court, Hyderabad Praga
insurance Act, 1948 Division
9. The Employees stateESI dues Employees 1.42
ESIC Court, Hyderabad Praga
insurance Act, 1948 Division
c) According to the information and explanations given to and on the basis of the examination by the statutory auditors
of the records of the Holding Company, its subsidiary companies incorporated in India, the amounts required to be
transferred by the Holding Company to Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder the group did not have any dues on
account of Investor Education and Protection Fund.
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VIII. HMT International Limited has no accumulated losses
at the end of the year on a standalone basis and has
not incurred cash losses on a standalone basis in the
current year and in the immediately preceding financial
year.
The Holding Company has accumulated losses of
` 95,858.07 Lakhs at the end of the financial year on a
standalone basis and it has also incurred cash losses
of 9,385.31 Lakhs on a standalone basis in the current
year (no cash losses in the immediately preceeding
financial year).
HMT Watches Ltd has accumulated losses of
` 251209.86 Lakhs on a standalone basis as at the
close of 31st March, 2015, against which paid up capital
is 649.01 Lakhs and the Company has incurred cash
losses during the current year as well as in the
immediately preceeding financial year on a standalone
basis. The net-worth of the Company has fully eroded
at beginning of the financial year and the accumulated
losses exceed the share capital of the Company
consequently affecting the Going Concern assumption
of the Company.
The accumulated losses of HMT Machine Tools Ltd
have exceeded its net worth on a standalone basis.
Consequently, the Company has filed application with
BIFR during November, 2005 as per the provision of
Sick Industrial Companies (Special Provisions) Act,
1985 and the sanction is received on June 13, 2008.
Also during the year 2007-08, Government of India has
sanctioned a revival plan envisaging infusion of funds
by way of Preferential and Equity Capital, conversion
of long term loan into Equity Capital and waiver of
interest to address the negative net worth of the
Company. Though the appeals before AAFIR and BIFR
sanctions pending disposal, considering the revival plan
of the company and BIFR sanctioned rehabilitation
scheme, the accounting continues to be prepared on
Going Concern basis. The Company has incurred cash
loss of 12,625.13 Lakhs during the year and 4369.98
Lakhs for the previous year on a standalone basis.
HMT Bearings Ltd has accumulated losses at the end
of financial year and has incurred cash losses during
the financial year on a standalone basis. The paid up
capital of the Company is ` 37.70 Crores and the
accumulated losses are 148.46 Crores on a standalone
basis. The accumulated losses are more than fifty
percent of the net worth of the Company. The Company
was declared as Sick Industrial Undertaking under
Section 3(1) of the SIC Act, 1985 on April 23, 2009.
The accumulated losses of HMT Chinar Watches Ltd
have exceeded 50% of its net worth as at 31st March,
2015. The Company has incurred cash losses of
` 4,891 Lakhs in current financial year and ` 5,045
Lakhs in preceding financial year.
On a consolidated basis, there are accumulated losses
of ` 5,33,707.76 Lakhs at the end of the year which
exceeds the fifty percent of their consolidated net worth,
and have incurred cash losses of ` 54,348.85 Lakhs
during the year and `23,271.29 Lakhs in the
immediately preceding financial year.
IX. In their opinion and according to the information and
explanations given to the statutory auditors of the
Holding Company and HMT Machine Tools Ltd, the
companies have no continued defaults in repayment of
their respective dues to the Financial Institutions, banks
or debenture holders. HMT Watches Limited, HMT
International Ltd and HMT Chinar Watches Ltd did not
have dues to banks or Financial Institutions or
debenture holders during the year. HMT Bearings Ltd
has defaulted in repayment of dues with regard to loans
taken from Government. The details of loan defaults
are as follows:
ParticularsPrincipal Interest Total
(` ` ` ` ` in lakhs) (` ` ` ` ` in lakhs) (` ` ` ` ` in lakhs)
Capex Loan from GOI 225.00 430.88 655.88
Loan for salaries & statutory dues from
GOI including VRS compensations 3429.60 3351.92 6781.52
GOI Loan for repayment of Bank Loan 1156.00 857.17 2013.17
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X. According to the information and explanations given to
the statutory auditors of the Holding Company and
Subsidiary Companies, the holding company and its
subsidiary companies incorporated in India have not
given any guarantees for loans taken by others from
financial institutions.
XI. In their opinion and according to the information and
explanations given to the respective statutory auditors,
the Holding Company and its subsidiary companies
incorporated in India have not raised any term loans.
The term loans taken by HMT Watches Limited and
HMT Chinar Watches Ltd from Government of India
through Holding Company were applied for the purpose
for which they were obtained.
XII. According to the information and explanations given to
the statutory auditors of the Holding Company and its
subsidiary companies incorporated in India no
instances of material fraud on or by each company
has been noticed or reported during the course of audit
by the statutory auditors of the Holding Company and
its subsidiary companies incorporated in India.
As per our Report attached
For M/s. DOKANIA S KUMAR & CO.
(Firm Registration No. 322919E)
CHARTERED ACCOUNTANTS
(CA. Sushil Kumar Dokania)
Partner
Membershi No.057020Place: Bangalore
Date: 10/08/2015
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Basis of preparation of financial statements
The financial statements are prepared as of a going concern,
under the historical cost convention, on accrual basis of
accounting and in accordance with the provisions of the
Companies Act, 2013 and comply with the mandatory
Accounting Standards prescribed under Section 133 of
Companies Act 2013, read with Rule 7 of Companies
(Accounts) Rules 2014, the provisions of the Act (to the
extent notified) and guidelines prescribed by the Securities
& Exchange Board of India (SEBI).
Fixed Assets
Fixed Assets are stated at cost of acquisition or construction,
net of Cenvat credit, less accumulated depreciation to date.
Cost includes direct costs and financing costs related to
borrowing attributable to acquisition that are capitalized until
the assets are ready for use.
Land received free of cost from the State Governments has
been nominally valued and incidental expenditure incurred
thereon has been capitalized.
Expenditure on development of land is included in the cost
of land.
Assets taken on Finance Lease are capitalized at fair value
/ NPV / contracted price. Depreciation on the same is
charged at the rate applicable to similar type of fixed assets
as per Accounting Policy on “Depreciation”. If the lease
assets are returnable to the lessor on expiry of lease period,
the same is depreciated over its useful life or lease period,
whichever is shorter.
Lease payments made are apportioned between finance
charges and reduction of outstanding liability in relation to
assets taken on lease.
Lease payments made for assets taken on Operating Lease
are recognized as expense over the lease period.
Expenditure incurred on Reconditioning of plant, machinery
and equipment which increases the future benefits from
the existing asset beyond its previously assessed standard
of performance is included in the Gross Book Value which
results in:
(a) Modification of an item of plant to extend its useful
life, including increase in its capacity;
SIGNIFICANT ACCOUNTING POLICIES FOR CONSOLIDATED FINANCIAL STATEMENTS
(b) Upgrading machine parts to achieve a substantial
improvement in the quality of out-put; and
(c) Adoption of new production processes enabling a
substantial reduction in previously assessed
operating costs.
The cost of an addition or extension to an existing asset
which is of a capital nature and which becomes an integral
part of the existing asset is added to its gross block value.
The expenditure on Reconditioning of plant, machinery &
equipment which do not increase the future benefits from
the existing asset beyond the previously assessed standard
of the performance based on the technical assessment, is
charged off to Revenue.
Items of Capital Assets with WDV of ` 1 lakh and above,
which have been retired from active use, are disclosed at
lower of book value or net realizable value and shown
separately in the Fixed Assets Schedule.
Depreciation
Depreciation on fixed assets is provided on straight line
basis over the useful life of the various assets as prescribed
in Schedule II to the Companies Act, 2013, pro-rata with
reference to the date of addition or deletion. As and when
assets gets fully depreciated, ` 1/- is retained as book
value of the asset. Assets costing less than ` 10,000/-
shall be depreciated to Re.1/- in the year of purchase.
Depreciation on fixed assets is calculated on a pro-rata
basis from the date of such addition or as the case may be
up to the date on which such asset is sold, discarded or
destroyed.
Useful life specified in the Schedule is for whole of the asset.
Where cost of a part (component) of the asset is significant
to total cost of asset and useful life of that part is different
from the useful life of the remaining asset:-
a. If addition / replacement of the part (component)
enhances the useful life / capacity of the asset,
the useful life shall be reassessed & accordingly
depreciation to be provided;
b. If the addition / replacement of the part (component)
does not enhance the useful life / capacity of the
asset, the same shall be charged to P&L.
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Premium for leasehold land is amortized equally over the
period of lease.
Investments
Investments are either classified as current or long-term.
Current investments are carried at lower of cost and fair
value. Long-term investments are carried at cost and
provisions recorded to recognize any decline, other than
temporary, in the carrying value of each investment. Gain
or loss is recognized in the year of sale.
Inventories
Inventories are valued at the lower of cost and net realizable
value. The cost of materials is ascertained by adopting
Weighted Average Cost Method.
Revenue recognition
Sales are set up based on:
Physical delivery of goods to the customer / customer’s
carrier /common carrier, duly supported by invoice, excise
duty paid challan, gate pass, delivery voucher and LR /
GR, in case of ex-works contracts.
LR/GR obtained and endorsed in favour of customer
(consignee ‘self’), in case of FOR destination contracts.
Despatches to dealers/customers in respect of Machines,
Tractors, Watches & Bearings
Sales include Excise Duty but are net of trade discount
and exclude sales tax.
Income in respect of consultancy agreements/contracts is
accounted, based on the ratio of work completed each year
to the total value of the agreements/contracts.
Foreign currency transactions
Transactions in foreign currency are recorded in Indian rupee
by applying to the foreign currency amount the exchange
rate existing at the time of the transaction.
The outstanding balances of monetary items relating to
foreign currency transactions are stated in Indian rupee by
adopting the rate of exchange prevailing at the date of
Balance Sheet. Exchange differences consequent to
reinstatement are credited / charged to revenue.
The gain or loss in the conversion and / or settlement of
liabilities incurred for acquisition of fixed assets is either
credited or charged to revenue during the period such gain
or loss arise.
In the case of forward exchange contracts, the premium ordiscount arising at the inception of the contract is accountedfor over the life of the contract. Exchange differences onsuch a contract are recognized in the statement of profit orloss in the reporting period in which the exchange ratechanges.
Borrowing costs
Borrowing costs are charged to revenue except those which
are incurred on acquisition or construction of a qualifyingasset that necessarily takes substantial time to be readyand until intended use of the said asset, such costs arecapitalized.
Employee Benefits
Provident Fund is provided for, under a defined benefitscheme. The contributions are made to the Trustadministered by the company.
Leave encashment is provided for under a defined benefit
scheme based on actuarial valuation.
Gratuity is provided for, under a defined benefit scheme, tocover the eligible employees, liability being determined onactuarial valuation. Annual contributions are made, to theextent required, to a trust constituted and administered bythe Life Insurance Corporation of India under which thecoverage is limited to Rs. 50,000/- per eligible employee.The balance provision is being retained in the books to
meet any additional liability accruing thereon for paymentof Gratuity.
Settlement allowance is provided for, under a defined benefitscheme, to cover the eligible employees, liability beingdetermined on actuarial valuation.
Pension is provided for under a defined contribution scheme,contributions are made to the Pension Fund administeredby the Government.
Warranty
Warranty provision for contractual obligations in respect of
Machines, Tractors, Watches & Bearings sold is set upbased on the past experience and is provided in the year ofsale.
With regard to turnkey projects implemented by theCompany warranty provision at the rate of 2 percent of thepurchase value is provided.
Special Tools
Expenditure on manufactured and bought out special tools
are amortized equally over a five year period or earlier, if
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scrapped. Individual items costing less than Rs.750/- are
written off fully in the initial year of acquisition / manufacture.
Income Tax
Taxes are determined following the tax effect accounting
method and a provision therefore is recognized. A deferred
tax asset or deferred tax liability is recorded to recognize
the tax effect on timing differences arising on reconciliation
of profit/loss as per financial statements and profit/loss as
per taxation.
Earnings per share
Basic earnings per share is determined by considering the
net profit after tax, inclusive of the post tax effect on
extraordinary items, if any, and the number of shares
outstanding on a weighted average basis.
Government Grants
Government Grants are accounted when there is a
reasonable certainty of their realization. Grants related to
revenue, unless received as compensation for expenses /
losses, are recognized as revenue over the period to which
these are related on the principle of matching costs to
revenue. Grants related to depreciable fixed assets are
adjusted against the gross cost of the relevant assets while
those related to non-depreciable assets are credited to
capital reserve.
Intangible Assets
Intangible assets are capitalized at cost if
(a) It is probable that the future economic benefits that
are attributable to the asset will flow to the
company,
(b) The Company will have control over the assets,
and
(c) the cost of these assets can be measured
realiably.
Technical Know-how
Expenditure on Technical Know-how is recognized as an
Intangible Asset and amortized on straight line method
based on technical assessment for a period not exceeding
ten years. The amortization commences when the asset
is available for use.
Software
The cost of software internally generated / purchased for
internal use which is not an integral part of the related
hardware is recognized as an Intangible Asset and isamortized on straight line method based on technicalassessment for a period not exceeding ten years.
Research and Development Expenditure
Research Phase:
Expenditure on research including the expenditure duringthe research phase of Research & Development Projectsis charged to profit and loss account in the year ofincurrence.
Development Phase:
Expenditure incurred on Development Costs, which relateto Design, Construction and Testing of a chosen alternativefor new or improved material, devices, products, processes,systems or services are recognized as an intangible asset.Such Intangible assets are amortized based on technicalassessment over a period not exceeding ten years usingstraight line method.
Impairment of Assets
As at the end of each Balance Sheet date, the carryingamount of assets is assessed as to whether there is anyindication of impairment. If the estimated recoverableamount is found less than its carrying amount, theimpairment loss is recognized and assets are written downto their recoverable amount.
Others
The amount of .50000/- per head received/receivable fromLIC on account of gratuity claims in respect of employeesseparated under Voluntary Retirement Scheme during theyear is accounted as Other Income.
In respect of employees who are separated other than underVoluntary Retirement Scheme, the Gratuity paid in excessof 50000/-, Earned Leave Encashment (ELE), SettlementAllowance (SA) is debited to the respective provisionaccounts. The provision at the yearend for ELE and SA isrestated as per the actuarial valuation done at the year-end. In case of ELE and SA, any short or excess provisionis charged as expenditure or treated as provision no longerrequired.
Gratuity, Earned Leave encashment, Settlement Allowanceand Lump sum Compensation paid to employees underVoluntary Retirement Scheme shall be fully written off inthe year of incidence.
Expenses incurred in respect of Bonds issued for raisingfunds to meet payments made under the VoluntaryRetirement Scheme are fully written off in the year of
disbursement.
****
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CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2015
( ` in lakhs )
Note As at As at
No. 31-03-2015 31-03-2014
I EQUITY AND LIABILITIES
1 SHAREHOLDERS’ FUNDS(a) Share Capital 1 186409.16 142035.01(b) Reserves and Surplus 2 (514855.97) (458565.40)
2 SHARE APPLICATION MONEY PENDING ALLOTMENT 3 - 44374.15
3 MINORITY INTEREST 4 19.89 -
4 NON-CURRENT LIABILITIES(a) Long-term Borrowings 5 131159.52 108645.94(b) Deferred Tax Liabilities (Net) 6 121.31 119.15(c) Long-term Provisions 7 20949.58 19875.89
5 CURRENT LIABILITIES(a) Short-term Borrowings 8 4936.32 9699.44(b) Trade Payables 9 6651.70 7278.30(c) Other Current Liabilities 10 203997.83 170369.58(d) Short-term Provisions 11 22511.18 20023.24
TOTAL 61900.52 63855.30
II ASSETS
1 NON-CURRENT ASSETS(a) Fixed Assets
(i) Tangible Assets 12 9352.55 11152.69(ii) Intangible Assets 12 48.60 86.83(iii) Capital Work-in-Progress 12 1302.14 1297.84
(b) Non-Current Investments 13 57.23 72.23(c) Long Term Loans & Advances 14 356.10 329.87
2 CURRENT ASSETS(a) Inventories 15 18157.83 19537.01(b) Trade Receivables 16 10905.75 9185.54(c) Cash and Cash Equivalents 17 12624.39 13464.41(d) Short-term Loans and Advances 18 7414.28 7228.41(e) Other Current Assets 19 1681.65 1500.47
TOTAL 61900.52 63855.30
Significant Accounting Policies.See accompanying notes to the financial statements. 1-52The Accompanying notes form an intergral part of the financial statements
Particulars
For and on behalf of Board As per our Report attached
For M/s. DOKANIA S KUMAR & CO.(F.R.N. 322919E)
CHARTERED ACCOUNTANTS
S. Girish Kumar P. Sivarami Reddy B. K. Subash (CA. Sushil Kumar Dokania)
Chairman & Managing Director Director Company Secretary Partner
Membershi No.057020Place : New DelhiDate : August 10, 2015
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REVENUE
I Gross Revenue from Operations 20 29639.67 29088.51 Less: Excise Duty 1975.96 2009.60
Net Revenue from Operations 27663.71 27078.91
II Other Income 21 4719.01 4459.82
III Total Revenue (I + II) 32382.72 31538.73
IV EXPENSESCost of Materials Consumed 22 8981.71 11113.80Purchase of Stock in Trade 23 1543.93 850.68Changes in Inventories of Finished Goods,SIT, WIP & Scrap 24 804.99 (1109.60)Employee Benefits Expense 25 34255.49 28630.41Finance Costs 26 29147.74 26220.30Depreciation & Amortisation Expenses 27 1236.86 1324.36Other Expenses 28 11624.89 20380.79Less: Jobs done for Internal use 29 (354.12) (400.51)
Total Expenses 87241.49 87010.23
V Profit / (Loss) Before Exceptional, Extrordinary items,Adjustment for Prior Period Items and Tax (III - IV) (54858.77) (55471.50)
VI Add : Exceptional Items - Income / (Expenditure) 30 - 30971.63
VII Less : Prior Period Adjustments 31 726.94 95.78
VIII Profit / (Loss) Before Extra ordinary Items and Tax (V - VI - VII) (55585.71) (24595.65)
IX Extra ordinary Items - -
X Profit / (Loss) Before Tax (VIII - IX) (55585.71) (24595.65)
XI Tax Expense
(1) Current Tax 112.07 1898.48
(2) Deferred Tax 2.23 2.13
XII Profit / (Loss) for the Period (X - XI) (55700.01) (26496.26)
XIII Earnings Per Equity Share:
Equites Share of Nominal value of 10/- each
Before Exceptional Items - Basic & Diluted (in Rupees) - (7.30)After Exceptional Items - Basic & Diluted (in Rupees) - (3.22)After Tax - Basic & Diluted (in Rupees) (4.80) (3.48)Number of Shares in computing Earnings Per Shares 1160325355 760350140
Significant Accounting Policies.See accompanying notes to the financial statements. 1-52The Accompanying notes form an intergral part of the financial statements
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2015
( ` in lakhs )
Note Year ended Year ended
No. 31-03-2015 31-03-2014Particulars
For and on behalf of Board As per our Report attached
For M/s. DOKANIA S KUMAR & CO.(F.R.N. 322919E)
CHARTERED ACCOUNTANTS
S. Girish Kumar P. Sivarami Reddy B. K. Subash (CA. Sushil Kumar Dokania)
Chairman & Managing Director Director Company Secretary Partner
Membershi No.057020Place : New DelhiDate : August 10, 2015
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(` in lakhs )
Note As at As at
No 31-03-2015 31-03-2014
NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET
Particulars
1 SHARE CAPITAL
AUTHORISED
123,00,00,000 (Previous year 123,00,00,000)Equity Shares of 10/- each 123000.00 123000.00
8,70,00,000 (Previous year 8,70,00,000)Preference Shares of 100/- each 87000.00 87000.00
210000.00 210000.00
ISSUED, SUBSCRIBED & PAID UP
120,40,91,640 (Previous year 76,03,50,140)Equity Shares of 10/- each
{ of the above 3,18,85,900 (Previous year 3,18,85,900) shares are alloted
as fully paid up for consideration other than cash} 120409.16 76035.01
68,43,15,126 i.e., 90% (Previous year 75,18,53,740 i.e., 98.88%)Equity
Shares of 10/- each are held by President of India alongwith nominees
4,43,00,000 (Previous year 4,43,00,000) 3.5% Redeemable Preference Shares of
of 100/- each Entire 3.5% Redeemable Preference Share Capital is held
by President of India 44300.00 44300.00
217,00,000 (Previous year 2,17,00,000) 8% Redeemable Preference Shares
` 100/-each Entire 8% Redeemable Preference Share Capital is held
by President of India 21700.00 21700.00
186409.16 142035.01
1.A During the year 44,37,41,500 Equity Shares were allotted to the President of India on Conversion of Government
of India Loans (Long Term & Current maturity). However, the Shares have not been issued pending in-principle
approval from the National Stock Exchange.
1B. Out of the issued, subscribed & paid-up Equity Shares, of the above 3,18,85,900 (Previous year 3,18,85,900)
shares are alloted as fully paid up for consideration other than cash.
1C. The details of Shareholders holding more than 5% Shares
Name of the Shareholders As at 31-03-2015 As at 31-03-2014
No. of Shares % held No. of Shares % held
Equity Shares:
Hon’ble President Of India 1128056626 93.69 684315126 90
3.5% Redeemable Prefernce Shares
Hon’ble President Of India 44300000 100 44300000 100
8% Redeemable Prefernce Shares
Hon’ble President Of India 21700000 100 21700000 100
1.D The reconciliation of the number of shares outstanding is set out below:
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NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2015 (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
No. of Shares No. of Shares
Equity Shares:
Shares at the beginning of the year 760350140 760350140
Add: Shares Issued on account of Conversion of Loan from Govt of India 443741500 -
Shares at the end of the year 1204091640 760350140
3.5% Redeemable Preference Shares
Shares at the beginning of the year 44300000 -
Add: Shares Issued under Revival Plan of HMT Machine Tools Ltd, a Subsidiary - 44300000
Shares at the end of the year 44300000 44300000
8% Redeemable Preference Shares
Shares at the beginning of the year 21700000 -
Add: Shares Issued during in the year - 21700000
Shares at the end of the year 21700000 21700000
2 RESERVES AND SURPLUS
Capital Reserve*
Opening Balance as per last Balance Sheet 2270.82 2270.82
General Reserve
Opening Balance as per last Balance Sheet 16550.97 16550.97
Add: Transfers during the year 30.00
16580.97 16550.97
Balance in Statement of Profit & Loss
Opening Balance as per last Balance Sheet (477387.19) (450874.18)
Add: Share of Profit of Sudmo-HMT Process Engineers (India) Ltd. 4.42 -
Add: adjustments relating to Fixed Assets (Refer Note No.12) (586.09) -
Add: Profit/(Loss) for the year (55738.90) (26513.01)
Net Surplus/(Deficit) in the Statement of Profit & Loss (533707.76) (477387.19)
TOTAL (514855.97) (458565.40)
*Differential amount in the face value of Equity Shares held by Government of Andhra Pradesh and Government
of India in the erstwhile Praga Tools Ltd, which is merged with HMT Machine Tools Ltd and the consideration of
` 1/- to be paid to each of them as per the scheme of Merger sanctioned by BIFR.
3 SHARE APPLICATION MONEY PENDING ALLOTMENT
Towards Conversion of GOI Loans into Equity Share Capital under Revival
Plan of HMT Limited, approved by Govt. of India. (Share Deposit) - 44374.15
TOTAL - 44374.15
4 MINORITY INTEREST 19.89 -
19.89 -
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5 LONG TERM BORROWINGS
SECURED - -
UNSECURED
Loans from Government of India with interest @ 3.5% to 15.5%, repayable
In 1-5 equal annual installments from the date of drawal of loan 130173.02 107659.44
Amount of continuing default 83464.02 lakhs (Previous year 72532.02 lakhs)
Term Loans from Bank with interest @11.5% p.a. upto 31.5.2013 and
15% p.a. till the date of settlement 986.50 986.50
Amount of continuing default Rs.Nil (Previous year Rs.Nil)
TOTAL 131159.52 108645.94
6 DEFERRED TAX LIABILITIES (NET)
Deferred Tax Liability arising on account of Depreciation 121.31 119.15
TOTAL 121.31 119.15
7 LONG TERM PROVISIONS
Provision for Employee Benefits:
Gratuity 17688.40 17303.19
Earned Leave Encashment 2504.03 1843.58
Settlement Allowance 757.15 729.12
TOTAL 20949.58 19875.89
8 SHORT TERM BORROWINGS
SECURED
Cash Credits 4936.32 7989.74
Short Term Loans - 1709.70
4936.32 9699.44
UNSECURED - -
TOTAL 4936.32 9699.44
Cash Credits and Short Term Loans as referred to above, are repayable on demand and are secured by hypothecation
of entire current assets of the Company including inventories and trade receivables, by first charge and collateral
security by way of equitable mortgage by deposit of title deed of the immovable property of the Company ranking
pari passu inter-se the participating banks. (Amount of continuing default Rs.Nil (Previous year .330.39 lakhs)
NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
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NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
9 TRADE PAYABLESAcceptances 409.00 248.96Dues towards Goods purchased & Services Received 5220.79 6366.55Dues to Micro, Small & Medium Enterprises 1021.91 662.79
TOTAL 6651.70 7278.30
9.A The details of amounts outstanding to Micro, Small and MediumEnterprises based on information available with the Companiesas under:Principal amount due and remaining unpaid 1021.91 662.79Interest due on above and the unpaid interest 547.43 364.47Interest remaining due and payable in the succeeding year until the dues areactually paid 4.71 3.76Interest paid
9.B Interest accrued and remaining unpaid as at the end of the accounting year
2014-15 388.86 364.472013-14 85.33 60.942012-13 83.43 83.432011-12 72.58 72.582010-11 60.40 60.402009-10 55.24 55.242008-09 31.24 31.242007-08 0.64 0.64
10 OTHER CURRENT LIABILITIESCurrent maturities of long-term debt
Loans from Government of India 18372.22 12915.25Interest accrued and due on borrowings
Government of India Loan 127594.77 103200.46Loan from Bank 1566.08 1418.10
Interest accrued but not due on borrowingsGovernment of India Loan 14307.77 12209.24
OthersAdvance received against sale of land 889.62 889.62Advance received against sales 4254.36 4166.95Sundry Creditors - other dues 11986.79 10316.90Other liabilities 25026.22 25253.06
203997.83 170369.5811 SHORT TERM PROVISIONS
Provision for Employee BenefitsGratuity 3994.70 1701.99Leave Encashment 817.23 495.58Settlement Allowance 252.47 132.06
5064.40 2329.63Provision for Income Tax 1973.18 1900.06Provision for Contingencies 315.60 366.37Provision for Warranty 106.64 168.09Other provisions* 15051.36 15259.09
22511.18 20023.24
* include provision towards 1992 Wage and Salary Revision
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104
NO
TE
S F
OR
MIN
G P
AR
T O
F C
ON
SO
LID
AT
ED
BA
LA
NC
E S
HE
ET
12
FIX
ED
AS
SE
TS
(
`
in la
kh
s )
Gro
ss B
lock
A
ccu
mu
late
d D
epre
ciat
ion
Net
Blo
ck
Bal
ance
Add
ition
sD
educ
tions
/B
alan
ceB
alan
ceD
educ
tions
/D
epre
ciat
ion
Bal
ance
Bal
ance
Bal
ance
as
atA
djus
tmen
tsas
at
as a
tA
djus
tmen
tsdu
ring
the
as a
tas
at
as a
t
01-0
4-20
1431
-03-
2015
01-0
4-20
14 y
ear
31-0
3-20
1531
-03-
2015
01-0
4-20
14
ITa
ngib
le A
sset
s
Ow
ned
Ass
ets:
Land
& L
and
Dev
elop
men
t
659.
99
-
-
6
59.9
9
-
-
-
-
65
9.99
659.
99
Bui
ldin
gs
6
987.
72
(18.
39)
-
6
969.
33
4
755.
56
163.
52
120
.72
5039
.80
192
9.53
223
2.16
Pla
nt a
nd M
achi
nery
6
0821
.51
2
1.31
90.
2860
752.
54 5
2807
.45
254.
85
1
052.
91
5411
5.21
6637
.33
8014
.06
Fur
nitu
re, F
ittin
gs
& O
ffice
App
lianc
es
2
083.
86
2
.40
17.6
0
20
68.6
6
1
867.
89
54.
13
4
0.50
1
962.
52
106.
14
215.
97
Tran
spor
t Veh
icle
s
255.
85 -
16
.55
239
.30
23
9.56
(
10.8
2)
4.82
2
33.5
6
5
.74
1
6.29
Su
b-t
ota
l
708
08.9
3
5.
32
124
.43
7
0689
.82
5
9670
.46
461.
68
1
218.
9561
351.
0993
38.7
3
111
38.4
7
Leas
ed A
sset
s:
Land
-Lea
seho
ld
26.
41
-
0.1
6
26.
25
12.
19
-
0.
24
12.4
3
13.
82
14.
22
Tota
l -
I
708
35.3
4
5
.32
1
24.5
9
707
16.0
7
596
82.6
5
461
.68
121
9.19
6136
3.52
935
2.55
1
1152
.69
IIIn
tang
ible
Ass
ets
Des
ign
& P
roto
type
2
7.58
-
27
.58
-
7
.02
(7.
02)
-
-
-20
.56
Tech
. Acq
uisi
tion/
Dev
elop
men
t
88.
36-
-
88.
36
22.
09
-
17.
67
3
9.76
48.
60
66.
27
Tota
l -
II
115.
94
-
27.5
8
88.
36
29.
11
(7.0
2)
1
7.67
39.
76
4
8.60
8
6.83
Tota
l70
951.
28
5.3
2
152
.17
7
0804
.43
5
9711
.76
45
4.66
123
6.86
6
1403
.28
94
01.1
5
112
39.5
2
Pre
viou
s Ye
ar
711
36.1
5
2
0.15
2
05.0
2
709
51.2
8
585
89.3
3
(
201.
93)
132
4.36
5
9711
.76
11
239.
52
Cap
ital W
ork-
in-P
rogr
ess
130
2.14
129
7.84
Not
e:
(a)
Qua
ntum
of l
oss
due
to Im
pairm
ent o
f Ass
ets
as p
er A
S-2
8 - N
il
(b)
Cap
ital W
ork-
in-P
rogr
ess
incl
udes
Mac
hine
ry &
Equ
ipm
ent w
hich
are
in T
rans
it an
d un
der I
nspe
ctio
n or
Ere
ctio
n.
(c)
Pur
suan
t to
enac
tmen
t of t
he C
ompa
nies
Act
, 201
3, th
e co
mpa
ny h
as a
pplie
d th
e es
timat
ed u
sefu
l liv
es a
s sp
ecifi
ed in
Sch
edul
e II.
Acc
ordi
ngly
, the
una
mor
tised
car
ryin
g
amou
nt is
bei
ng d
epre
ciat
ed o
ver t
he re
mai
ning
use
ful l
ives
. The
writ
ten
dow
n va
lue
of F
ixed
Ass
ets
who
se li
ves
wer
e ex
pire
d as
at 1
st A
pril,
201
4 ha
ve b
een
adju
sted
, in
the
open
ing
bala
nce
of S
tate
men
t of P
rofit
and
Los
s A
ccou
nt o
f 5
86.0
9 La
khs.
LA
ND
1T
he C
ompa
ny is
in p
osse
ssio
n of
gift
land
loca
ted
at B
anga
lore
, Pin
jore
, Kal
amas
sery
, Hyd
erab
ad m
easu
ring
267.
49 a
cres
, 822
.67
acre
s, 3
78.8
5 ac
res,
888
.05
acre
s,
nom
inal
ly v
alue
d at
1
/-, g
ifted
by
the
resp
ectiv
e S
tate
Gov
ernm
ents
. The
mut
atio
n of
title
of l
and
in th
e na
me
of th
e co
mpa
ny is
yet
to b
e do
ne. O
ut o
f the
land
loca
ted
at
Ban
galo
re 7
acr
es h
as b
een
encr
oach
ed u
pon
and
the
mat
ter h
as b
een
take
n up
with
the
Gov
t. of
Kar
nata
ka to
shi
ft th
e un
auth
oris
ed o
ccup
ants
.
Par
ticul
ars
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105
2T
he C
ompa
ny is
in p
osse
ssio
n of
leas
ehol
d la
nd m
easu
ring
30 a
cres
at
Aur
anga
bad
out o
f whi
ch 5
acr
es o
f la
nd h
as b
een
encr
oach
ed u
pon.
Fur
ther
, leg
al a
ctio
n is
bei
ng
purs
ued
for r
esto
ratio
n of
the
encr
oach
ed la
nd.
3In
res
pect
of l
ands
at H
yder
abad
, an
area
adm
easu
ring
28.4
0 ac
res
was
leas
ed to
var
ious
Gov
ernm
ent D
epar
tmen
ts a
t Hyd
erab
ad.
Pen
ding
reg
istr
atio
n of
tran
sfer
, the
Com
pany
has
agr
eed
to r
elea
se 1
4.20
acr
es o
f la
nd in
exc
hang
e fo
r 14
.20
acre
s of
land
und
er a
n ex
chan
ge a
gree
men
t w
ith a
Sta
te P
ublic
Sec
tor
Und
erta
king
. T
he
Com
pany
has
als
o le
ased
100
0 sq
. yar
ds o
f lan
d, fo
r whi
ch le
ase
deed
was
exe
cute
d an
d ag
reed
to re
leas
e an
othe
r tw
o ac
res
of la
nd to
AP
Pos
tal D
epar
tmen
t in
Hyd
erab
ad,
the
exec
utio
n of
whi
ch is
pen
ding
. The
Com
pany
has
obt
aine
d st
ay fr
om th
e A
ndhr
a P
rade
sh H
igh
Cou
rt, a
gain
st re
poss
essi
on o
f 106
acr
es a
nd 3
5 gu
ntas
of l
and
by th
e
Gov
ernm
ent o
f And
hra
Pra
desh
. No
final
ity h
as b
een
reac
hed
on th
e pr
opos
al fo
r sur
rend
er o
f 300
acr
es o
f lan
d ow
ned
by th
e C
ompa
ny a
t Hyd
erab
ad, t
o th
e G
over
nmen
t
of A
ndhr
a P
rade
sh, i
n lie
u of
pay
men
t of p
art s
ale
cons
ider
atio
n an
d is
sue
of m
arke
tabl
e tit
le fo
r the
bal
ance
land
.
4In
resp
ect o
f lan
ds a
t Pin
jore
, Har
yana
, the
Sta
te G
over
nmen
t has
issu
ed a
n or
der f
or re
sum
ptio
n of
446
acr
es o
f unu
tilis
ed la
nd, a
gain
st w
hich
the
Com
pany
has
obt
aine
d a
stay
from
the
Hig
h C
ourt
of P
unja
b &
Har
yana
aga
inst
the
said
resu
mpt
ion
orde
r and
the
sam
e is
con
tinui
ng. T
he C
ompa
ny h
as a
gree
d an
d tr
ansf
erre
d ab
out 5
acr
es o
f lan
d
to H
arya
na Ir
rigat
ion
depa
rtm
ent a
t the
ir re
ques
t for
con
stru
ctio
n of
Kau
shal
ya D
am a
nd c
ompe
nsat
ion
for t
he s
ame
is y
et to
be
reco
vere
d p
endi
ng m
utat
ion
of ti
tle o
f lan
d in
Com
pany
�s n
ame,
whi
ch i
s a
subj
ect m
atte
r of l
egal
pro
ceed
ings
bef
ore
the
Pun
jab
& H
arya
na H
igh
Cou
rt.
Fur
ther
, Nat
iona
l Hig
hway
s A
utho
rity
of In
dia
has
acqu
ired
abou
t
11.7
3 ac
res
of la
nd fo
r roa
d w
iden
ing
proj
ect a
nd c
ompe
nsat
ion
for t
he a
cqui
red
land
is a
wai
ted
as th
e m
atte
r reg
ardi
ng m
utat
ion
of ti
tle o
f lan
d in
Com
pany
�s n
ame
is p
endi
ng
befo
re th
e P
unja
b &
Har
yana
Hig
h C
ourt
.
5P
endi
ng fi
nalis
atio
n of
the
rate
s by
the
Gov
ernm
ent o
f Raj
asth
an, p
rovi
sion
for c
onve
rsio
n ch
arge
s, if
any
, pay
able
for c
onve
rsio
n of
Rev
enue
land
for I
ndus
tria
l use
at M
achi
ne
Tool
Uni
t Ajm
er, h
as n
ot b
een
mad
e in
the
acco
unts
as
the
mat
ter i
s su
b-ju
dice
and
exe
cutio
n of
leas
e de
ed is
pen
ding
.
6La
nd a
dmea
surin
g 2.
71 a
cres
has
bee
n le
ased
out
to th
e K
eral
a E
lect
ricity
Boa
rd a
nd P
osta
l aut
horit
ies
in K
alam
asse
ry.
Fur
ther
, HM
T-M
TL
has
leas
ed o
ut la
nd a
dmea
surin
g
5.00
Ha
and
2.50
Ha
to M
/s K
ochi
Met
ro R
ail L
td. f
or a
per
iod
of 2
yea
rs fr
om 6
.6.2
013
to 5
.6.2
015
and
from
1.9
.201
3 to
31.
8.20
15 re
spec
tivel
y, fo
r sto
ckya
rd a
nd fa
bric
atio
n
purp
ose.
How
ever
, DH
I app
rova
l is
awai
ted
with
resp
ect t
o th
e la
nd a
dmea
surin
g 2.
50 H
a.
7In
the
mat
ter r
elat
ing
to 1
95 a
cres
and
33
gunt
as la
nd h
ande
d ov
er to
HM
T M
achi
ne T
ools
Ltd
(HM
T M
TL)
by
the
Gov
t. of
And
hra
Pra
desh
, HM
T M
TL
has
filed
Writ
pet
ition
No.
2001
2 of
200
3 on
the
file
of H
on�b
le H
igh
Cou
rt o
f AP
aga
inst
the
Gov
t of A
ndhr
a P
rade
sh a
nd O
ther
s w
here
in H
MT
MT
L ha
s so
ught
dire
ctio
ns fo
r dem
arki
ng 1
95.3
3 ac
res
of la
nd fo
r han
ding
ove
r the
sam
e to
HM
T M
TL.
Dur
ing
rece
ntly
con
duct
ed s
urve
y by
HM
T M
TL,
it h
as c
ome
to th
e no
tice
that
app
roxi
mat
ely
39 a
cres
of l
and
is n
ot in
the
actu
al
poss
essi
on b
ut p
aym
ent f
or e
ntire
195
.33
acre
s of
land
has
bee
n m
ade
to th
e de
cree
hol
ders
. Out
of t
he a
bove
land
, 600
0 sq
.mts
of l
and
is a
llote
d to
AP
SE
B fo
r set
ting
up o
f 33
KV
Sw
itchi
ng S
tatio
n an
d 33
/11
KV
Ele
ctric
al s
ub s
tatio
n. T
he c
ompe
nsat
ion
paya
ble
by A
PS
EB
is n
ot y
et b
een
dete
rmin
ed. G
HM
C is
sued
a n
otic
e vi
de n
o. 4
1/86
/RW
/TP
S/
GH
MC
/SC
/200
7 da
ted
01-1
2-20
07 to
take
ove
r 238
.86
sq. y
ards
of l
and
for r
oad
wid
enin
g pr
ogra
mm
e un
dert
aken
by
them
out
of t
he 3
000
sq. y
ards
ava
ilabl
e at
Kav
adig
uda,
Sec
unde
raba
d w
ithou
t any
com
pens
atio
n. H
MT
MT
L ha
d pr
otes
ted
for t
his
and
rais
ed a
dem
and
for c
ompe
nsat
ion
for l
and
prop
osed
to b
e ta
ken
over
by
them
for r
oad
wid
enin
g
prog
ram
me
at p
reva
iling
mar
ket r
ate
whi
ch is
pen
ding
.
8In
resp
ect o
f HM
T M
TL,
land
adm
easu
ring
64.6
2 ac
res
has
been
leas
ed o
ut to
Hyd
erab
ad M
etro
Rai
l Cor
pora
tion
for a
per
iod
of 3
yea
rs c
omm
enci
ng fr
om 1
st S
epte
mbe
r 201
2
to 3
1st A
ugus
t 201
5 fo
r a te
mpo
rary
cas
ting
cum
sta
ckin
g ya
rd.
OT
HE
RS
9In
resp
ect o
f HM
T M
TL,
Pla
nt &
Mac
hine
ry in
clud
es 8
item
s of
Fix
ed A
sset
s id
entif
ied
as s
urpl
us a
nd fo
r dis
posa
l, th
e ne
t blo
ck o
f whi
ch is
1
6,80
,779
/-.
10In
one
of t
he U
nits
of t
he C
ompa
ny, s
ome
of th
e as
sets
gro
uped
und
er P
lant
& M
achi
nery
with
WD
V
23/
-, F
urni
ture
, Fix
ture
s &
Offi
ce A
pplia
nces
with
WD
V
22/
- wer
e bu
rnt
durin
g fir
e an
d T
rans
port
Veh
icle
with
WD
V
1/-
was
lost
due
to th
eft,
to b
e w
ritte
n of
f.
NO
TE
S F
OR
MIN
G P
AR
T O
F C
ON
SO
LID
AT
ED
BA
LA
NC
E S
HE
ET
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106
13 NON CURRENT INVESTMENTS
Long Term Investments (Unquoted) - Valued at Cost less Permanent
Dimunition in the value of Investments
TRADE INVESTMENTS - -
In Equity Shares
30,00,000 (Previous year 30,00,000) Ordinary Shares of Naira 1 each
fully paid up in Nigeria Machine Tools Ltd, Nigeria. 171.55 171.55
20,84,050 (Previous year 20,84,050) Equity Shares of 1 each fully
paid up in Gujarat State Machine Tools Corporation Ltd., Bhavnagar. 20.84 20.84
2,94,800 (Previous year 2,94,800) Equity Shares of 10/- each (of which
1,34,000 [Prev. year 1,34,000] Shares at a premium of 140/- each) fully
paid up in Andhra Pradesh Gas Power Corporation Limited, Hyderabad 217.08 217.08
In Equity Shares of Joint Venture
Nil (Previous year 1,50,000) Equity Shares of 10 each fully paid up in
Sudmo HMT Process Engineers (India) Ltd., Bangalore. - 15.00
409.47 424.47
Less: Provision for dimunition in value of Investment
Nigeria Machine Tools Ltd., Nigeria 171.55 171.55
Gujarat State Machine Tools Corporation Ltd, Bhavnagar 20.84 20.84
Andhra Pradesh Gas Power Corporation Ltd, Hyderabad 159.85 159.85
352.24 352.24
Total Non Current Investments 57.23 72.23
Aggregate amount of Unquoted Investemnts 57.23 72.23
14 LONG TERM LOANS AND ADVANCES
Capital Advance
Unsecured Considered Good 356.10 329.87
Unsecured Considered Doubful 7.88 7.88
363.98 337.75
Less:Provision for Doubtful Advance 7.88 7.88
356.10 329.87
15 INVENTORIES*
Raw Materials and components 3601.22 3720.19
Material and components in transit 290.44 564.79
Work-in-progress 10039.81 11490.19
Finished goods 5237.46 6248.08
Stock in Trade 549.40 445.01
NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
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NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
Goods in Transit 1566.44 -
Stores and spares 1332.96 1381.16
Tools and instruments 802.51 789.96
Scrap 115.49 130.31
23535.73 24769.69
Less: Provision for Non-moving Inventories 5377.90 5232.68
18157.83 19537.01
* Includes Stock with C&F Agents / Contractors / Ancillary units /
Customs / in Bonds / in site
16 TRADE RECEIVABLES*
UNSECURED
Trade receivables outstanding for a period exceeding six months
from the date they are due for payment:
Considered good 4032.72 4231.88
Considered doubtful 14001.51 13890.92
18034.23 18122.80
Others
Considered good 6873.03 4953.66
Considered Doubtful 30.41 -
6903.44 4953.66
Less: Provision for doubtful debts 14031.92 13890.92
10905.75 9185.54
*Debts due by firms or Private Companies in which any Director, - -
Officer is a Partner or a Director or a Member
17 CASH AND CASH EQUIVALENTS
Cash and Cheques on hand 2651.91 58.09
Balance with Banks in Current account 969.61 4269.44
Balance with Banks in Deposit account* 8874.05 9034.13
With Post Office in Savings Bank Accounts** 128.82 102.75
12624.39 13464.41
* Includes
Deposits with maturity of 3 months or less 158.46 140.78
Deposits with more than 12 months maturity 1469.61 1405.98
Deposits held as margin money or security against
guarantees & other commitments 1996.73 1304.22
** Pass Books deposited with Central Excise Authorities.
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18 SHORT TERM LOANS AND ADVANCES*
Unsecured - -
ADVANCES RECOVERABLE IN CASH OR IN KIND OR FOR
VALUE TO BE RECEIVED
Secured
Considered Good 263.32 9.49
263.32 9.49
Unsecured
Considered Good # 5919.43 6084.62
Considered Doubtful 942.84 934.98
6862.27 7019.60
Less:Provision for doubtful advances 942.84 934.98
5919.43 6084.62
OTHER ADVANCES
Unsecured
Considered Good
Balance with Collectors of Customs, Central Excise, etc., 33.82 43.40
Deposits 774.20 777.67
Advance Income Tax/TDS Receivable 423.51 313.23
1231.53 1134.30
7414.28 7228.41
*Debts due by firms or Private Companies in which any Director, Officer
is a Partner or a Director or a Member. - -
# Includes advances to suppliers, prepaid expenses, MODVAT Credit to be availed etc.
19 OTHER CURRENT ASSETS
Special Tools 468.17 496.55
Interest on Trade Receivable 5970.24 6190.76
Less: Provision for interest on Trade Receivable 4756.76 5186.84
1213.48 1003.92
1681.65 1500.47
NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
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20 GROSS REVENUE FROM OPERATIONS*
INLAND
Sale of Products
Tractors 4832.84 6241.07
Food Processing Machinery 487.52 738.00
Accessories 176.32 169.73
Sale of Services
Sundry jobs and miscellaneous sales 643.13 813.37
Packing / Forwarding charges 7.59 8.41
6147.40 7970.58
MACHINE TOOLS
Sale of Products
Machine Tools 15007.96 13586.21
Accessories 1909.08 2171.60
Sale of Services
Sale of services 167.67 169.55
Sundry jobs and miscellaneous sales 1663.97 1500.03
Packing/forwarding charges 110.16 97.65
18858.84 17525.04
WATCHES
Sale of Products
Watches 892.79 784.13
Sale of Services
Sale of services 2.68 3.35
Sundry jobs and miscellaneous sales 25.04 48.44
Packing/forwarding charges 13.61 15.36
934.12 851.28
BEARINGS
Sale of Products
Ball & Roller Bearings 1656.23 1631.28
1656.23 1631.28
EXPORTS
Sales & Commission 917.41 520.87
Technical Services 14.74 2.07
Project Works 1110.93 587.39
2043.08 1110.33
TOTAL 29639.67 29088.51
* Nett of Trade Discount
NOTES FORMING PART OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS (` in lakhs )
ParticularsNote Year ended Year ended
No 31-03-2015 31-03-2014
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110
21 OTHER INCOME
Servicing Income 7.92 4.41
Recoveries from Staff/Others 261.91 243.91
Royalties 0.16 4.50
Rent received 1212.67 1056.86
Profit on sale of assets 30.16 49.09
Interest Income
On Bank Deposits 672.28 479.07
Interest from Dealers/Others 200.52 336.94
Dividend from Subsidiaries 7.20 14.40
Provisions no longer required withdrawn 1638.40 1285.30
Grant received from GOI - 17.09
Other non operating income * 687.79 968.25
4719.01 4459.82
* includes Training expenses recovered, disposal of Scrap, Freight & Insurance recoveries
22 COST OF MATERIALS CONSUMED
Raw materials and Components
Opening Stock 3720.19 3859.16
Purchases 8862.74 10974.83
12582.93 14833.99
Less: Closing Stock 3601.22 3720.19
8981.71 11113.80
22.A Particulars of Materials consumed:
Steel 602.51 473.18
Non-ferrous Metals 6.85 14.50
Ferrous Castings 914.01 1035.21
Non-ferrous Castings 44.03 53.05
Forgings 347.05 532.51
Standard parts 2790.51 2197.47
Components 4187.72 6640.37
Others 89.03 167.51
TOTAL 8981.71 11113.80
23 PURCHASES OF STOCK IN TRADE
Purchases of Stock in Trade 1543.93 850.68
1543.93 850.68
NOTES FORMING PART OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS (` in lakhs )
ParticularsNote Year ended Year ended
No 31-03-2015 31-03-2014
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NOTES FORMING PART OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS (` in lakhs )
ParticularsNote Year ended Year ended
No 31-03-2015 31-03-2014
24 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROCESS,
& STOCK IN TRADE
FINISHED GOODS
Closing Balance 5237.46 6248.08
Opening Balance 6248.08 6695.27
1010.62 447.19
GOODS IN TRANSIT
Closing Balance 1566.44 -
Opening Balance - -
(1566.44) -
SCRAP
Closing Balance 115.49 130.31
Opening Balance 130.31 111.70
14.82 (18.61)
WORK IN PROGRESS
Closing Balance 10039.81 11490.19
Opening Balance 11490.19 9962.78
1450.38 (1527.41)
STOCK IN TRADE
Closing Balance 549.40 445.01
Opening Balance 445.01 434.24
(104.39) (10.77)
TOTAL 804.99 (1109.60)
25 EMPLOYEE BENEFIT EXPENSES *
Salaries,Wages and Bonus 22467.38 19290.27
House Rent Allowance 828.99 630.90
Gratuity 5461.35 3845.23
Contribution to PF & FPS 2468.91 2064.22
Deposit Linked Insurance 98.52 46.07
Contribution to ESI 18.02 27.09
Welfare Expenses 2912.32 2726.63
34255.49 28630.41
* Includes
Wages for Repairs to Machinery 799.38 710.46
Wages for Repairs to Building 52.48 51.72
26 FINANCE COSTS
Interest Expense
Government of India Loans 26504.85 23328.98
Cash Credit loans from Banks 1027.59 1120.37
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112
NOTES FORMING PART OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS (` in lakhs )
ParticularsNote Year ended Year ended
No 31-03-2015 31-03-2014
Loans from Bank 147.98 -
HMT Bonds 16.09 334.55
Short Term Loan from Bank - 167.88
Others 1255.06 991.30
Other Borrowing Cost
Finance Charges 19.55 14.42
Bank / Discounting Charges 183.36 220.42
(Gain) / Loss on Foreign curreny transactions (Net) (6.74) 42.38
29147.74 26220.30
27 DEPRECIATION AND AMORTISATION EXPENSE
Depreciation 1219.19 1303.93
Amortisation of Intangible Assets 17.67 20.43
1236.86 1324.36
28 OTHER EXPENSES
28.1 Manufacturing Expenses
Consumption of Stores,Spares,Tools & Pkg.Matls.* 3616.26 3433.73
Power and Fuel 1253.59 1474.37
Excise Duty 228.28 142.79
Repairs to machinery 55.44 61.67
Amortisation of Special Tools 365.53 363.50
Provision for Non Moving Inventories 291.20 346.64
28.2 Selling & Distribution Expenses
Rebate on Sales 149.56 139.99
Selling & Distribution Expenses 8.39 4.42
Advertisement and Publicity 64.42 47.56
Carriage outwards 207.43 234.70
28.3 Establishment Expenses
Rent 115.24 112.43
Rates and Taxes 331.96 405.60
Insurance 51.92 54.41
Water and Electricity 582.12 602.96
Repairs to building 26.35 42.42
Printing and Stationery 60.75 66.29
Training expenses 134.49 81.09
Auditors Remuneration # 10.74 13.20
Provision for loss in value of investment - 325.86
Other Agents Commission 0.87 1.37
Provision for Doubtful Debts,Loans and Advances 1153.12 9403.60
Provision for Contingencies - 34.14
Warranty claims 101.94 180.10
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NOTES FORMING PART OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS (` in lakhs )
ParticularsNote Year ended Year ended
No 31-03-2015 31-03-2014
Loss sustained by PF Trust 237.70 236.13
Loss on Assets sold - 0.14
Bad Debts / Advances written off 352.62 269.93
Travelling Expenses 444.81 473.70
Miscellaneous Expenses 1780.16 1828.05
11624.89 20380.79
* Includes Stores and Spares parts for:
Repairs to Machinery 30.02 35.33
Repairs to Building 8.82 1.79
# As Auditor 7.37 6.94
For taxation matters 2.33 2.33
For other services 0.30 0.38
Reimbursement of expenses 0.37 1.12
Service tax 0.37 0.48
Cost Audit Fee & expenses - 1.95
29 JOBS DONE FOR INTERNAL USE
Shop manufactured Special Tools (354.12) (400.51)
(354.12) (400.51)
30 EXCEPTIONAL ITEMS
Income
Interest Waiver on GOI Loans - 24045.31
Withdrawal of Interest on GOI Loans - 8554.14
Interest Waiver on One Time Settleent - 975.40
Guarantee Fee Waiver - 375.92
- 33950.77
Less: Expenses
VRS Compensation - 386.67
Reversal of Income on land sale reversal - 986.41
Interest on Loan from Bank - 1418.10
Guarantee fee expenses - 187.96
- 2979.14
- 30971.63
31 PRIOR PERIOD ADJUSTMENTS (PPA)
Materials 47.43 0.82
Employee benefit expenses 65.72 3.55
Other Expenses 648.47 130.83
761.62 135.20
Less:
Other Income 34.68 39.42
726.94 95.78
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NOTES FORMING PART OF CONSOLIDATED STATEMENT OF PROFIT AND LOSS
32 DISCLOSURE REGARDING PROVISION
Provision in respect of present obligations arising out of past events are made in the Accounts based on reasonable
estimates of the obligations. Provision for Warranty is made as per the Accounting Policy.
The details of provision for Warranty claims are furnished below:
(` in Lakhs)
As at As at
31.3.2015 31.3.2014
Opening Balance 168.09 212.20
Additions during the year 76.74 171.43
Total 244.83 383.63
Less: Used during the year
Utilised 72.85 141.94
Withdrawn 65.35 73.60
138.20 215.54
Closing Balance 106.63 168.09
33 DISCLOSURE REGARDING RELATED PARTIES
1 Name of the Company SUDMO HMT Process Engineers (India) Ltd, Bangalore
2 Nature of Relationship Joint Venture Company
(` in Lakhs)
2014-15 2013-14
3 Nature of Transactions
Advances given for expenses during the year 2.40 2.45
Advances reimbursed by the Company - 4.34
4 Outstanding at the year end 4.85 2.45
34 EARNINGS PER SHARE
2014-15 2013-14
i) Net Profit/(Loss) after Tax as per Statement of Profit and Loss
attributable to Equity Shareholders (` in lakhs) (55700.01) (26496.26)
ii) Weighted Average number of Equity Shares used as denominator
for calculating EPS 1160325355 760350140
iii) Basic and Diluted Earnings per Share (`) (4.80) (3.48)
iv) Face Value per Equity Share (`) 10 10
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NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
35 CONTINGENT LIABILITIES
The Company is contingently liable for:
35.A Claims against the Company not acknowledged as debts
I Tax related claims pending in appeal
i) Excise Duty 371.21 589.16
ii) Sales Tax 409.72 459.96
iii) Customs Duty 212.29 207.70
iv) Property Tax 1850.60 1064.25
v) Others 1077.26 135.43
II Non receipt of related Forms against levy of concessional
Sales Tax 7569.45 3064.93
III Employee related claims relating to Lockouts, Back wages, Incentives &
Annual bonus, etc., pending adjudication, to the extent ascertainable. 1140.25 1017.14
IV Various cases relating to defective product, accident causing injuries to
third parties, claims relating to supply of materials etc. 6577.08 5295.24
V Guarantees/Counter Guarantees issued 1921.29 664.93
VI Liability towards interest, penalty/damages as per 7Q and 14B
of Employees Provident Fund and Miscellaneous Provisions Act, 1952 3932.74 5511.24
35.B The Company had deposited 16.00 Lakhs before II Additional Chief Judge,
City Civil Court, Hyderabad against the claim made by M/s. Medvin Hospital
Hyderabad out of said claim the company has acknowledged only 2,69,433/-
as debts 13.31 13.31
35.C Refund to Andhra Pradesh State Government based on the outcome of the appeal
preferred by the Government in EP No. 124/2006 in O. S. 794/92 6.47 6.47
35.D Estimated amount of contracts remaining to be executed on capital account
and not provided for 595.12 225.34
35.E The GOI had released a Plan Assistance of 200 lakhs to the Company during
March 2007 to meet the Capital Expenditure of HMT Watches Ltd, the wholly
owned Subsidiary, in the form of Equity (` 100 lakhs) & Loan (`100 lakhs). In
view of the non utilisation of the funds by the Subsidiary within the stipulated
period, GOI had instructed the Company during December 2009 for refund of
the total Plan Assistance of ` 200 lakhs. Accordingly, the Company has
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116
refunded the Loan amount of 100 lakhs to GOI during February 2010. However,
with regard to refund of Equity portion, since the Company has already issued
10,00,000 Equity Shares of `10 each (` 100 lakhs) in favour of President of
India during April 2007, as per the terms of GOI sanction, the same could not
be carried out, as it would amount to reduction in Share Capital requiring the
approval of the Share Holders and completion of other statutory formalities as
per the Companies Act, 1956 and applicable rules in this regard, and the same
has been communicated to GOI. Further instructions are awaited from GOI on
the same.
35.F Preference Share Capital
The Government of India while approving the Revival Plan of HMT Machine
Tools Ltd (HMT-MTL), a Subsidiary Company, during March 2007, had accorded
sanction for cash infusion of ` 44300 lakhs in the form of 3.5% Preference
Share Capital which was routed through the Company for investment in the
Preference Share Capital in the Subsidiary, to be redeemed after 3 years i.e.
31.3.2010 out of sale of surplus immovable Properties of HMT-MTL.
Since the title deeds in respect of the identified immovable properties are not
mutated in the name of the HMT-MTL, the sale of these properties have been
approved by the Government as part of the Revival Plans of the Company (HMT
Ltd). The Preference Share Capital will be redeemed upon sale of immovable
property.
36 Deferred Tax Asset/Liability
Accounting for Taxes as per Accounting Standard-22. Deferred Tax balance as
at March 31, 2014 comprising the timing difference between the profit as per
financial statements and as per Income Tax is made up of:
Deferred Tax Assets (Net) Opening Balance (119.08) (117.02)
On Depreciation to Fixed Assets (2.23) (2.13)
Deferred Tax Assets (Net) Closing Balance (121.31) (119.15)
37 Inventories include
37.1 Excise Duty paid / payable on Closing Stock of Finished Goods & Scrap.
However, this has no effect on the working results of the Company 417.03 453.53
37.2 Include usable slow/non moving and surplus stores and materials /
work-in-progress / stock-in trade. 588.63 868.22
37.3 Some of the physical verification certificates in respect of stocks at
showrooms / exhibitions / on consignment are awaited.
NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
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NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET (` in lakhs )
ParticularsNote As at As at
No 31-03-2015 31-03-2014
38 Trade Receivables include
38.1 Dues towards erection and commissioning for a period exceeding one year 419.27 130.74
38.2 Amounts withheld towards liquidated damages and interest on advances
claimed/if claimed on delayed supplies. - 563.91
38.3 Dues from parties against whom cases have been filed before various
Courts which are pending. 3430.00 3430.00
39 Advances include
39.1 Amounts recoverable from employees advances, bonus etc pending
adjudication / negotiations 3.95 5.48
39.2 Adhoc payments to employees towards Wage/Salary, DA arrears, if any,
pending adjustment & provision to this extent has been made in the
accounts 3680.55 3889.77
40 Other liabilities include unspecified/excess credits in bank accounts 17.73 17.73
41 The BIFR has sanctioned Rehabilitation Package for HMT MTL envisaging
various sanctions, waivers and exemptions from various Govt. Agencies
and Banks. The Order of BIFR was received by HMT MTL on 13.06.2008.
However, some of the stake holders filed appeal with AAIFR against the
Order of BIFR and final hearing yet to be heard. Pending the outcome of
AAIFR Orders and other statutory formalities to be complied with, no
effect has been given for the disputed waivers and exemptions in the
financial statements of HMT MTL for the period ended 31.3.2015, from
the various stake holders as envisaged in the DRS, approved by BIFR.
42 HMT Bearings Ltd, a Subsidiary Company has been declared as “Sick
Industrial Undertaking” u/s 3(1)(o) of SICA, 1985, on 23rd April 2009.
43 Balances under ‘Trade Receivables’ , ‘Loans & Advances’, ‘Trade
Payables’ and ‘Other Current Liabilities’ are subject to confirmation,
although confirmation has been sought in most of the cases.
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118
44 Sales is net off sales returns
Sales returns in respect of
a Tractors & Spares 0.09 85.90
b Machine Tools 18.81 0.65
45 Employee Benefit expense include
a Provision for Earned Leave encashment made based on Actuarial valuation
of Earned Leave at credit as at the year end. 1726.83 812.26
b Provision for Settlement Allowance made based on Acturial Valuation 268.84 169.27
46 Gratuity has been provided /paid under a Group Gratuity Policy with Life
Insurance Corporation of India. Additional provision made during the year for
full coverage in excess of 50,000/- per employee based on actuarial
valuation by LIC [full coverage in case of HMT Bearings Ltd & HMT
(International) Ltd ]. 5451.87 3845.23
47 Value of Special Tools individually costing less than 750/-
written off during the year. 55.47 58.65
48 Revenue expenditure on Research & Development charged to Statement
of profit & loss 537.16 446.86
49 A Previous year’s figures have been reclassified wherever necessary to
conform to this year’s classification.
49 B Figures of M/s Sudmo HMT Process Engineers (India) Limited,
Bangalore not included in the previous year’s consolidation.
NOTES FORMING PART OF CONSOLIDATED STATEMENT OF PROFIT & LOSS (` in lakhs )
ParticularsNote Year ended Year ended
No 31-03-2015 31-03-2014
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50 PRINCIPLES OF CONSOLIDATION OF FINANCIAL STATEMENTS
The consolidated financial statements relate to HMT Limited (‘the Company’) and its Subsidiary Companies. The
Consolidated Financial Statements have been prepared in accordance with Accounting Standard (AS-21)
“Consolidated Financial Statements” notified by Companies (Accounting Standard) Rules, 2014 on the following
basis:
a. The Subisidiary Companies considered in the Financial Statements are as follows
Country of Proportion of ownership
Incorporation Interest
2014-15 2013-14
i) HMT Machine Tools Limited India 100% 100%
ii) HMT Watches Limited India 100% 100%
iii) HMT Chinar Watches Limited India 100% 100%
iv) HMT (International) Limited India 100% 100%
v) HMT Bearings Limited India 99.4% 99.4%
vi) Sudmo-HMT Process Engineers (India) Ltd. India 50%
b. The financial statements of the Company and its subsidiaries are combined on a line-by-line basis by
adding together the book values of like items of assets, liabilities, income and expenditure, after eliminating intra
group balances, intra group transactions and any unrealised profit/loss included therein.
c. The Consolidated Financial Statements have been prepared using uniform accounting policies for like
transactions and are presented to the extent possible in the same manner as the Company’s separate financial
statements.
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DISCLOSURE REQUIRED AS PER ACCOUNTING STANDARD - 15 (REVISED)- EMPLOYEE BENEFITS
The Gratuity has been provided by the Company under a Defined Benefit Plan to cover the eligible employees, the
liability being determined on actuarial valuation done by LIC using Projected Unit Credit Method. The Company has
taken a Policy under Group Gratuity Scheme comprising of HMT Limited, HMT Machine Tools Limited, HMT Watches
Limited and HMT Chinar Watches Ltd. with LIC and annual contributions are made to the extent required, to the
separate Trust constituted and administered by the Life Insurance Corporation of India under which the coverage is
limited to ` 50,000/- per eligible employee. In respect of HMT Bearings Ltd. and HMT (International) Ltd the Group
Gratuity Policy has been taken for coverage of 10,00,000/- per eligible employee. In respect of Praga Tools Division,
Hyderabad of HMT Machine Tools Ltd, there exist no Policy under Group Gratuity scheme with LIC.
The actuarial valuation has been made based on the following assumptions:
1 Retirement Age 58 years ( 60 years in HMT Ltd. & HMT (I) Ltd.)
2 Future Salary escalation 7% p.a.
3 Rate of discount 8% p.a.
4 Attrition rate 1 to 3% depending on age
5 Mortality rate LIC (1994-96) Ultimate
The provision for gratuity as on 31-03-2015 for the balance amount based on the above assumptions for over and
above the amount covered under the LIC policy in respect of the Company is 20459.63 lakhs
Defined Benefit Plan
(` in lakhs)
Gratuity (Funded)
2014-15 2013-14
1 Reconciliation of changes in respect of obligations
Present value of obligation as at beginning of year 2204.45 2331.29
Interest cost 176.36 186.50
Current Service Cost 11.43 19.03
Benefits Paid 183.38 295.01
Acturial (gain)/loss on obligations (167.38) (37.36)
Present value of obligation as at end of year 2041.48 2204.45
2 Reconciliation of changes in the fair value of plan assets
Fair value of plan assets at beginning of year 3231.92 2827.92
Expected return on plan assets 285.46 248.15
Contributions 32.00 450.86
Benefits paid 183.38 295.01
Actuarial Gain / (Loss) on Plan assets - -
Fair value of plan assets at the end of year 3366.00 3231.92
3 Reconciliation of fair value of plan assets
Fair value of plan assets at beginning of year 3231.92 2827.92
Actual return on plan assets 285.46 248.15
Contributions 32.00 450.86
Benefits Paid 183.38 295.01
Fair value of plan assets at the end of year 3366.00 3231.92
Funded status 1324.52 1027.47
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DISCLOSURE REQUIRED AS PER ACCOUNTING STANDARD - 17- SEGMENT REPORTING
I Primary Segment information: (` in lakhs)
Particulars Machine Tools Watches Tractors Bearings Exports Sudmo-HMT Total
1 Segment Revenue
- External Turnover 18858.84 934.12 6147.40 1656.23 2043.08 - 29639.67
- Intra Segment Turnover - - - - - - -
- Inter Segment Turnover - - - - - - -
Gross Turnover 18858.84 934.12 6147.40 1656.23 2043.08 - 29639.67
Less: Excise Duty 1644.00 30.87 119.05 182.04 - - 1975.96
Net Turnover 17214.84 903.25 6028.35 1474.19 2043.08 - 27663.71
2 Segment Result before interest
PPA, EOI & Taxes (10241.56) (7587.18) (7819.24) (174.49) 110.09 1.35 (25711.03)
Interest 3134.66 22632.30 1835.62 1600.73 (55.58) 0.01 29147.74
Profit before Exceptional, Extra (13376.22) (30219.48) (9654.86) (1775.22) 165.67 1.34 (54858.77)
Oridinary items, PPA and Taxes
Exceptional Items - - - - - - -
Prior period adjustments (PPA) 117.44 605.40 1.80 2.30 - - 726.94
Profit before Extra Oridinary Items (13493.66) (30824.88) (9656.66) (1777.52) 165.67 1.34 (55585.71)
Extra Ordinary Items
Profit/(Loss) before Tax (13493.66) (30824.88) (9656.66) (1777.52) 165.67 1.34 (55585.71)
Current Tax 111.66 0.41 112.07
Deferred Tax 2.23 - 2.23
Profit/(loss) after Tax (13493.66) (30824.88) (9656.66) (1777.52) 51.78 0.93 (55700.01)
3 Other information
Segment Assets 32859.50 8049.69 13287.12 3016.58 4662.78 24.85 61900.52
Segment Liabilites 71524.66 255708.70 47477.40 13928.19 1688.41 0.08 390327.44
Capital Expenditure 1.35 0.00 3.23 0.00 0.74 - 5.32
Depreciation 868.53 66.32 271.35 16.03 14.63 - 1236.86
Non Cash Expenses
other than depreciation
Note: As per Accounting Standard on Segment Reporting (AS-17) notified by Companies (Accounting Standards)
Rules, 2014, the Company has reported segments information on Consolidated basis (including businesses
conducted through its Subsidiaries)
II Secondary Segment Information: (` in lakhs)
1. Segment Revenue - External Turnover 3. Segment Liabilities
- Within India 27596.59 - Within India 390327.44
- Outside India 2043.08 - Outside India -
Total 29639.67 Total 390327.44
2. Segment Assets 4. Segment Capital Expenditure
- Within India 61900.52 - Within India 5.32
- Outside India - - Outside India -
Total 61900.52 Total 5.32
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(` in lakhs)
Year ended Year ended
31.03.2015 31.03.2014
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit /(Loss) Before Tax and Extra-ordinary Items (55585.71) (24595.65)
Adjustment for:
Depreciation 1236.86 1,324.36
Exceptional Items - Interest Wavier etc., - (31358.30)
Profit on Sale of Fixed Assets (net) (30.16) (48.95)
Amortisation of Special Tools 365.53 363.50
Foreign Exchange (net) (6.74) 42.38
Interest debited (Net) 28281.68 25127.07
Dividend received (7.20) (14.40)
Provision for Obsolescence, Doubtful debts, Advances (194.08) 29645.89 8,824.94 4260.60
Operating Profit Before Working Capital Changes (25939.82) (20335.05)
Adjustment for:
(Increase)/Decrease in Trade & Other Receivables (1971.12) 1346.52
(Increase)/Decrease in Inventories 1233.96 (927.46)
(Increase)/Decrease in Other Current Assets 83.89 (135.00)
Increase/(Decrease) in Trade payables 4462.47 3809.20 3373.31 3657.37
Cash Generated From Operations (22130.62) (16677.68)
Direct Taxes paid (149.28) (307.26)
Cash Flow Before Extra - ordinary Items (22279.90) (16984.94)
Extra-ordinary Items - -
NET CASH FROM OPERATING ACTIVITIES (22279.90) (16984.94)
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (9.62) (23.02)
Sale proceeds of Fixed Assets 30.34 52.04
Sale of Investments - -
Dividend Received 7.20 14.40
Interest Received 672.28 479.07
NET CASH USED IN INVESTING ACTIVITIES 700.20 522.49
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2015
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Note: 1) Above statement has been prepared under the Indirect method as set out in notified AS 3 - Cash Flow Statement
2) Cash and Cash Equivalents has been considered as per Note No.B17.
3) Opening Cash and Cash Equivalents as on 1-4-2014 includes Rs. 39.17 lakhs iro Sudmo-HMT Process Engineers (India) Ltd.
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2015
(` in lakhs)
Year ended Year ended
31.03.2015 31.03.2014
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Share Capital - 66074.15
Proceeds from Long Term/Short Term Borrowings 27943.75 13252.01
Repayment of Long Term/Short Term Borrowings (4736.32) (51557.52)
Repayment of Finance Lease Liabilities - -
Exchange Difference (net) 6.74 (42.38)
Dividends paid - -
Interest Paid (2513.66) (3322.45)
NET CASH USED IN FINANCING ACTIVITIES 20700.51 24403.81
NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS (879.19) 7941.36
CASH AND CASH EQUIVALENTS AS AT 1ST APRIL 13503.58 5523.05
(Opening Balance)
CASH AND CASH EQUIVALENTS AS AT 31ST MARCH 12624.39 13464.41
(Closing Balance)
INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS (879.19) 7941.36
For and on behalf of Board As per our Report attached
For M/s. DOKANIA S KUMAR & CO.(F.R.N. 322919E)
CHARTERED ACCOUNTANTS
S. Girish Kumar P. Sivarami Reddy B. K. Subash (CA. Sushil Kumar Dokania)
Chairman & Managing Director Director Company Secretary Partner
Membership No.057020Place : New DelhiDate : August 10, 2015
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FINANCIAL INFORMATION RELATING TO SUBSIDIARY COMPANIES OF HMT LIMITED FORTHE YEAR ENDED 31st MARCH 2015
Sl. HMT HMT HMT HMT HMT Sudmo-HMT
No. Particulars Machine Watches Chinar Bearings (International) Process Engi-
Tools Ltd Ltd Watches Ltd Ltd Ltd neers (India) Ltd.
a) Capital 71959.91 649.01 166.01 3770.91 72.00 30.00
b) Reserves & Surplus (111207.18) (251209.86) (58685.76) (14822.20) 3139.11 4.88
c) Total Assets 32859.50 7407.93 641.76 3016.58 4662.78 24.85
d) Total Liabilities 71524.66 205066.29 50642.41 13928.19 1688.41 0.08
e) Investments - - - 41.15 - -
f) Turnover 18858.84 843.63 90.49 1656.23 2043.08 -
g) Profit/(Loss) before Taxation (13493.66) (25920.26) (4904.62) (1777.52) 165.67 1.34
h) Provision for Taxation - - - - 113.89 0.41
i) Profit/(Loss) after Taxation (13493.66) (25920.26) (4904.62) (1777.52) 51.78 0.93
j) Proposed Dividend (%) Nil Nil Nil Nil 20% Nil
(` in lakhs)